603757.SS WACC - Weighted Average Cost of Capital
The WACC of Zhejiang Dayuan Pumps Industry Co Ltd (603757.SS) is 9.8%.
| Range | Selected | |
| Cost of equity | 9.2% - 11.7% | 10.45% |
| Tax rate | 12.0% - 12.8% | 12.4% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.7% - 10.9% | 9.8% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.06 | 1.13 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.2% | 11.7% |
| Tax rate | 12.0% | 12.8% |
| Debt/Equity ratio | 0.12 | 0.12 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.7% | 10.9% |
| Selected WACC | 9.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 603757.SS | Zhejiang Dayuan Pumps Industry Co Ltd | 0.12 | 0.9 | 0.82 |
| 002613.SZ | Luoyang Northglass Technology Co Ltd | 0.04 | 1.1 | 1.07 |
| 002997.SZ | Rayhoo Motor Dies Co Ltd | 0.1 | 0.96 | 0.88 |
| 300095.SZ | Jiangxi Huawu Brake Co Ltd | 0.27 | 1.59 | 1.29 |
| 300193.SZ | Shenzhen Jasic Technology Co Ltd | 0.07 | 1.32 | 1.25 |
| 300385.SZ | Wuxi Xuelang Environmental Technology Co Ltd | 0.71 | 1.2 | 0.74 |
| 300757.SZ | RoboTechnik Intelligent Technology Co Ltd | 0.05 | 1.94 | 1.86 |
| 603095.SS | Zhejiang Yuejian Intelligent Equipment Co Ltd | 0.08 | 1.16 | 1.08 |
| 603319.SS | Hunan Oil Pump Co Ltd | 0.08 | 1.15 | 1.07 |
| 603339.SS | Square Technology Group Co Ltd | 0 | 0.84 | 0.84 |
| Low | High | |
| Unlevered beta | 0.99 | 1.08 |
| Relevered beta | 1.09 | 1.19 |
| Adjusted relevered beta | 1.06 | 1.13 |
603757.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 603757.SS:
cost_of_equity (10.45%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.06) + 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.