603380.SS WACC - Weighted Average Cost of Capital
The WACC of Suzhou Etron Technologies Co Ltd (603380.SS) is 10.2%.
| Range | Selected | |
| Cost of equity | 9.1% - 11.8% | 10.45% |
| Tax rate | 10.0% - 11.7% | 10.85% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.9% - 11.6% | 10.2% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.04 | 1.15 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.1% | 11.8% |
| Tax rate | 10.0% | 11.7% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.9% | 11.6% |
| Selected WACC | 10.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 603380.SS | Suzhou Etron Technologies Co Ltd | 0.04 | 1.08 | 1.04 |
| 002241.SZ | Goertek Inc | 0.24 | 0.88 | 0.73 |
| 002947.SZ | Suzhou Hengmingda Electronic Technology Co Ltd | 0.03 | 1.07 | 1.04 |
| 1967.HK | Confidence Intelligence Holdings Ltd | 0.14 | 0.67 | 0.6 |
| 2018.HK | AAC Technologies Holdings Inc | 0.25 | 0.88 | 0.73 |
| 300131.SZ | ShenZhen Yitoa Intelligent Control Co Ltd | 0.13 | 1.53 | 1.38 |
| 300450.SZ | Wuxi Lead Intelligent Equipment Co Ltd | 0.25 | 1.84 | 1.5 |
| 600745.SS | Wingtech Technology Co Ltd | 0.49 | 1.44 | 1 |
| 601138.SS | Foxconn Industrial Internet Co Ltd | 0.13 | 1.57 | 1.41 |
| 603583.SS | Zhejiang Jiecang Linear Motion Technology Co Ltd | 0.08 | 1.7 | 1.59 |
| Low | High | |
| Unlevered beta | 1.02 | 1.18 |
| Relevered beta | 1.06 | 1.22 |
| Adjusted relevered beta | 1.04 | 1.15 |
603380.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 603380.SS:
cost_of_equity (10.45%) = 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.