603633.SS
Shanghai Laimu Electronics Co Ltd
Price:  
8.8 
CNY
Volume:  
5,696,256
China | Electrical Equipment

603633.SS WACC - Weighted Average Cost of Capital

The WACC of Shanghai Laimu Electronics Co Ltd (603633.SS) is 9.2%.

The Cost of Equity of Shanghai Laimu Electronics Co Ltd (603633.SS) is 10.7%.
The Cost of Debt of Shanghai Laimu Electronics Co Ltd (603633.SS) is 5%.

RangeSelected
Cost of equity9.4% - 12.0%10.7%
Tax rate5.1% - 5.4%5.25%
Cost of debt5.0% - 5.0%5%
WACC8.2% - 10.2%9.2%
WACC

603633.SS WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta1.091.17
Additional risk adjustments0.0%0.5%
Cost of equity9.4%12.0%
Tax rate5.1%5.4%
Debt/Equity ratio
0.340.34
Cost of debt5.0%5.0%
After-tax WACC8.2%10.2%
Selected WACC9.2%

603633.SS WACC - Detailed calculations of Beta

LowHigh
Unlevered beta0.860.95
Relevered beta1.131.25
Adjusted relevered beta1.091.17

603633.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 603633.SS:

cost_of_equity (10.70%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.09) + 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.