600171.SS WACC - Weighted Average Cost of Capital
The WACC of Shanghai Belling Corp Ltd (600171.SS) is 10.2%.
| Range | Selected | |
| Cost of equity | 8.7% - 11.7% | 10.2% |
| Tax rate | 5.5% - 9.0% | 7.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.7% - 11.7% | 10.2% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.98 | 1.12 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.7% | 11.7% |
| Tax rate | 5.5% | 9.0% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.7% | 11.7% |
| Selected WACC | 10.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 600171.SS | Shanghai Belling Corp Ltd | 0 | 1.21 | 1.21 |
| 002218.SZ | Shenzhen Topraysolar Co Ltd | 0.42 | 1.1 | 0.79 |
| 1385.HK | Shanghai Fudan Microelectronics Group Co Ltd | 0 | 0.74 | 0.74 |
| 300327.SZ | Sino Wealth Electronic Ltd | 0.01 | 1.66 | 1.64 |
| 300666.SZ | Konfoong Materials International Co Ltd | 0.15 | 1.51 | 1.33 |
| 600360.SS | JiLin Sino Microelectronics Co Ltd | 0.29 | 1.07 | 0.84 |
| 603068.SS | Beken Corp | 0.03 | 1.07 | 1.05 |
| 603421.SS | Qingdao Topscomm Communication Inc | 0.19 | 0.83 | 0.7 |
| 688018.SS | Espressif Systems Shanghai Co Ltd | 0 | 1.2 | 1.2 |
| 688368.SS | Shanghai Bright Power Semiconductor Co Ltd | 0.07 | 1.25 | 1.17 |
| Low | High | |
| Unlevered beta | 0.97 | 1.18 |
| Relevered beta | 0.97 | 1.18 |
| Adjusted relevered beta | 0.98 | 1.12 |
600171.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 600171.SS:
cost_of_equity (10.20%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.98) + 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.