688138.SS WACC - Weighted Average Cost of Capital
The WACC of Shenzhen Qingyi Photomask Ltd (688138.SS) is 11.5%.
| Range | Selected | |
| Cost of equity | 10.0% - 13.6% | 11.8% |
| Tax rate | 11.0% - 13.0% | 12% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.8% - 13.2% | 11.5% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.2 | 1.39 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.0% | 13.6% |
| Tax rate | 11.0% | 13.0% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.8% | 13.2% |
| Selected WACC | 11.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 688138.SS | Shenzhen Qingyi Photomask Ltd | 0.1 | 1.71 | 1.57 |
| 003031.SZ | Hebei Sinopack Electronic Technology Co Ltd | 0.01 | 1.65 | 1.63 |
| 300127.SZ | Chengdu Galaxy Magnets Co Ltd | 0 | 1.56 | 1.56 |
| 300647.SZ | Shenzhen Fluence Technology PLC | 0.35 | 1.43 | 1.09 |
| 300799.SZ | Beijing Zuojiang Technology Co Ltd | 0.33 | 1.35 | 1.05 |
| 300811.SZ | POCO Holding Co Ltd | 0.04 | 1 | 0.96 |
| 300909.SZ | Shenzhen Hui Chuang Da Technology Co Ltd | 0.12 | 1.62 | 1.47 |
| 605118.SS | Xiamen Leading Optics Co Ltd | 0.01 | 1.12 | 1.11 |
| 688181.SS | Beijing Bayi Space LCD Technology Co Ltd | 0.09 | 1.44 | 1.34 |
| 688286.SS | Memsensing Microsystems Suzhou China Co Ltd | 0.01 | 1.74 | 1.73 |
| Low | High | |
| Unlevered beta | 1.25 | 1.51 |
| Relevered beta | 1.3 | 1.58 |
| Adjusted relevered beta | 1.2 | 1.39 |
688138.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 688138.SS:
cost_of_equity (11.80%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.2) + 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.