605268.SS WACC - Weighted Average Cost of Capital
The WACC of Wangli Security & Surveillance Product Co Ltd (605268.SS) is 11.0%.
| Range | Selected | |
| Cost of equity | 10.8% - 13.9% | 12.35% |
| Tax rate | 21.0% - 22.2% | 21.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.7% - 12.3% | 11.0% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.32 | 1.44 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.8% | 13.9% |
| Tax rate | 21.0% | 22.2% |
| Debt/Equity ratio | 0.19 | 0.19 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.7% | 12.3% |
| Selected WACC | 11.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 605268.SS | Wangli Security & Surveillance Product Co Ltd | 0.19 | 0.9 | 0.78 |
| 300907.SZ | Kangping Technology Suzhou Co Ltd | 0.07 | 1.21 | 1.15 |
| 300908.SZ | Zhongjing Food Co Ltd | 0 | 1.59 | 1.59 |
| 300940.SZ | Shen Zhen Australis Electronic Technology Co Ltd | 0.02 | 1.28 | 1.26 |
| 300946.SZ | Hengda New Materials Fujian Co Ltd | 0.02 | 1.65 | 1.62 |
| 605077.SS | Zhejiang Huakang Pharmaceutical Co Ltd | 0.5 | 1.3 | 0.94 |
| 605133.SS | Jiangsu Rongtai Industry Co Ltd | 0.11 | 1.42 | 1.3 |
| 688550.SS | XiAn Manareco New Materials Co Ltd | 0.01 | 1.5 | 1.49 |
| 688665.SS | Cubic Sensor and Instrument Co Ltd | 0.05 | 1.49 | 1.43 |
| 688687.SS | Beijing Kawin Technology Share-holding Co Ltd | 0.08 | 1.56 | 1.46 |
| Low | High | |
| Unlevered beta | 1.29 | 1.44 |
| Relevered beta | 1.48 | 1.66 |
| Adjusted relevered beta | 1.32 | 1.44 |
605268.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 605268.SS:
cost_of_equity (12.35%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.32) + 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.