605111.SS WACC - Weighted Average Cost of Capital
The WACC of Wuxi Nce Power Co Ltd (605111.SS) is 11.7%.
| Range | Selected | |
| Cost of equity | 10.4% - 13.4% | 11.9% |
| Tax rate | 11.5% - 12.2% | 11.85% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 10.3% - 13.2% | 11.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.26 | 1.37 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.4% | 13.4% |
| Tax rate | 11.5% | 12.2% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 10.3% | 13.2% |
| Selected WACC | 11.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 605111.SS | Wuxi Nce Power Co Ltd | 0.02 | 1.66 | 1.63 |
| 300323.SZ | HC SemiTek Corp | 0.38 | 1.43 | 1.07 |
| 300327.SZ | Sino Wealth Electronic Ltd | 0.01 | 1.71 | 1.69 |
| 300373.SZ | Yangzhou Yangjie Electronic Technology Co Ltd | 0.1 | 1.57 | 1.45 |
| 300474.SZ | Changsha Jingjia Microelectronics Co Ltd | 0.01 | 1.85 | 1.84 |
| 300613.SZ | Shanghai Fullhan Microelectronics Co Ltd | 0.06 | 1.75 | 1.66 |
| 300666.SZ | Konfoong Materials International Co Ltd | 0.14 | 1.52 | 1.35 |
| 600171.SS | Shanghai Belling Corp Ltd | 0 | 1.2 | 1.2 |
| 603005.SS | China Wafer Level CSP Co Ltd | 0.01 | 1.38 | 1.37 |
| 688368.SS | Shanghai Bright Power Semiconductor Co Ltd | 0.07 | 1.28 | 1.21 |
| Low | High | |
| Unlevered beta | 1.36 | 1.52 |
| Relevered beta | 1.39 | 1.55 |
| Adjusted relevered beta | 1.26 | 1.37 |
605111.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 605111.SS:
cost_of_equity (11.90%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.26) + 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.