603501.SS
Will Semiconductor Co Ltd Shanghai
Price:  
124.60 
CNY
Volume:  
8,199,742.00
China | Semiconductors & Semiconductor Equipment
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603501.SS WACC - Weighted Average Cost of Capital

The WACC of Will Semiconductor Co Ltd Shanghai (603501.SS) is 10.1%.

The Cost of Equity of Will Semiconductor Co Ltd Shanghai (603501.SS) is 10.50%.
The Cost of Debt of Will Semiconductor Co Ltd Shanghai (603501.SS) is 5.00%.

Range Selected
Cost of equity 9.20% - 11.80% 10.50%
Tax rate 9.80% - 14.70% 12.25%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.9% - 11.3% 10.1%
WACC

603501.SS WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 1.07 1.14
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.20% 11.80%
Tax rate 9.80% 14.70%
Debt/Equity ratio 0.06 0.06
Cost of debt 5.00% 5.00%
After-tax WACC 8.9% 11.3%
Selected WACC 10.1%

603501.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 603501.SS:

cost_of_equity (10.50%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.07) + 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.