603533.SS WACC - Weighted Average Cost of Capital
The WACC of IReader Technology Co Ltd (603533.SS) is 11.7%.
| Range | Selected | |
| Cost of equity | 10.5% - 13.0% | 11.75% |
| Tax rate | 16.9% - 21.2% | 19.05% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 10.5% - 13.0% | 11.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.27 | 1.31 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.5% | 13.0% |
| Tax rate | 16.9% | 21.2% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 10.5% | 13.0% |
| Selected WACC | 11.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 603533.SS | IReader Technology Co Ltd | 0 | 1.53 | 1.53 |
| 000606.SZ | Shunliban Information Service Co Ltd | 0.07 | -0.43 | -0.41 |
| 002123.SZ | Montnets Cloud Technology Group Co Ltd | 0.12 | 1.23 | 1.12 |
| 300036.SZ | Beijing SuperMap Software Co Ltd | 0 | 1.56 | 1.55 |
| 300571.SZ | Hangzhou Anysoft Information Technology Co Ltd | 0.42 | 1.75 | 1.3 |
| 300598.SZ | ArcherMind Technology Nanjing Co Ltd | 0.07 | 1.47 | 1.39 |
| 300830.SZ | JinXianDai Information Industry Co Ltd | 0.05 | 1.51 | 1.44 |
| 603039.SS | Shanghai Weaver Network Co Ltd | 0 | 1.51 | 1.51 |
| 688095.SS | Fujian Foxit Software Development Joint Stock Co Ltd | 0.01 | 1.42 | 1.42 |
| 688365.SS | Hangzhou Raycloud Technology Co Ltd | 0.04 | 1.54 | 1.5 |
| Low | High | |
| Unlevered beta | 1.41 | 1.46 |
| Relevered beta | 1.4 | 1.46 |
| Adjusted relevered beta | 1.27 | 1.31 |
603533.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 603533.SS:
cost_of_equity (11.75%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.27) + 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.