600110.SS WACC - Weighted Average Cost of Capital
The WACC of Nuode Investment Co Ltd (600110.SS) is 8.7%.
| Range | Selected | |
| Cost of equity | 11.1% - 16.5% | 13.8% |
| Tax rate | 12.2% - 28.4% | 20.3% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.6% - 9.7% | 8.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.38 | 1.8 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.1% | 16.5% |
| Tax rate | 12.2% | 28.4% |
| Debt/Equity ratio | 1.11 | 1.11 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.6% | 9.7% |
| Selected WACC | 8.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 600110.SS | Nuode Investment Co Ltd | 1.11 | 2.15 | 1.11 |
| 000682.SZ | Dongfang Electronics Co Ltd | 0.05 | 0.62 | 0.59 |
| 002176.SZ | Jiangxi Special Electric Motor Co Ltd | 0.18 | 1.53 | 1.32 |
| 002484.SZ | Nantong Jianghai Capacitor Co Ltd | 0.04 | 1.03 | 1 |
| 002617.SZ | Roshow Technology Co Ltd | 0.21 | 1.84 | 1.56 |
| 002733.SZ | Shenzhen Center Power Tech Co Ltd | 0.24 | 0.61 | 0.51 |
| 003021.SZ | Shenzhen Zhaowei Machinery & Electronic Co Ltd | 0.01 | 1.49 | 1.47 |
| 300224.SZ | Yantai Zhenghai Magnetic Material Co Ltd | 0.32 | 1.07 | 0.84 |
| 300602.SZ | Shenzhen FRD Science & Technology Co Ltd | 0.17 | 1.71 | 1.49 |
| 300933.SZ | Sinostar Cable Co Ltd | 0.57 | 1.12 | 0.76 |
| 601222.SS | Jiangsu Linyang Energy Co Ltd | 0.47 | 0.56 | 0.4 |
| Low | High | |
| Unlevered beta | 0.84 | 1.11 |
| Relevered beta | 1.57 | 2.19 |
| Adjusted relevered beta | 1.38 | 1.8 |
600110.SS's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for 600110.SS:
cost_of_equity (13.80%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.38) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.