603798.SS
Qingdao Copton Technology Co Ltd
Price:  
9.38 
CNY
Volume:  
15,979,323.00
China | Chemicals
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603798.SS WACC - Weighted Average Cost of Capital

The WACC of Qingdao Copton Technology Co Ltd (603798.SS) is 9.5%.

The Cost of Equity of Qingdao Copton Technology Co Ltd (603798.SS) is 9.65%.
The Cost of Debt of Qingdao Copton Technology Co Ltd (603798.SS) is 5.00%.

Range Selected
Cost of equity 8.40% - 10.90% 9.65%
Tax rate 13.10% - 15.60% 14.35%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.3% - 10.7% 9.5%
WACC

603798.SS WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.94 1.01
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.40% 10.90%
Tax rate 13.10% 15.60%
Debt/Equity ratio 0.03 0.03
Cost of debt 5.00% 5.00%
After-tax WACC 8.3% 10.7%
Selected WACC 9.5%

603798.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 603798.SS:

cost_of_equity (9.65%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.94) + 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.