600797.SS
Insigma Technology Co Ltd
Price:  
10.96 
CNY
Volume:  
144,396,200.00
China | IT Services
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600797.SS WACC - Weighted Average Cost of Capital

The WACC of Insigma Technology Co Ltd (600797.SS) is 9.8%.

The Cost of Equity of Insigma Technology Co Ltd (600797.SS) is 10.25%.
The Cost of Debt of Insigma Technology Co Ltd (600797.SS) is 5.00%.

Range Selected
Cost of equity 9.00% - 11.50% 10.25%
Tax rate 16.10% - 23.80% 19.95%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.7% - 10.9% 9.8%
WACC

600797.SS WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 1.04 1.1
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.00% 11.50%
Tax rate 16.10% 23.80%
Debt/Equity ratio 0.09 0.09
Cost of debt 5.00% 5.00%
After-tax WACC 8.7% 10.9%
Selected WACC 9.8%

600797.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 600797.SS:

cost_of_equity (10.25%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.04) + 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.