603283.SS
Suzhou Secote Precision Electronic Co Ltd
Price:  
32.8 
CNY
Volume:  
6,537,640
China | Machinery

603283.SS WACC - Weighted Average Cost of Capital

The WACC of Suzhou Secote Precision Electronic Co Ltd (603283.SS) is 10.5%.

The Cost of Equity of Suzhou Secote Precision Electronic Co Ltd (603283.SS) is 11.45%.
The Cost of Debt of Suzhou Secote Precision Electronic Co Ltd (603283.SS) is 5%.

RangeSelected
Cost of equity9.5% - 13.4%11.45%
Tax rate8.3% - 9.8%9.05%
Cost of debt5.0% - 5.0%5%
WACC8.9% - 12.2%10.5%
WACC

603283.SS WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta1.121.36
Additional risk adjustments0.0%0.5%
Cost of equity9.5%13.4%
Tax rate8.3%9.8%
Debt/Equity ratio
0.160.16
Cost of debt5.0%5.0%
After-tax WACC8.9%12.2%
Selected WACC10.5%

603283.SS WACC - Detailed calculations of Beta

LowHigh
Unlevered beta1.031.34
Relevered beta1.181.54
Adjusted relevered beta1.121.36

603283.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 603283.SS:

cost_of_equity (11.45%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.12) + 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.