688160.SS WACC - Weighted Average Cost of Capital
The WACC of Kinco Automation Shanghai Co Ltd (688160.SS) is 10.6%.
| Range | Selected | |
| Cost of equity | 9.3% - 12.0% | 10.65% |
| Tax rate | 9.6% - 10.3% | 9.95% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.3% - 12.0% | 10.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.08 | 1.17 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.3% | 12.0% |
| Tax rate | 9.6% | 10.3% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.3% | 12.0% |
| Selected WACC | 10.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 688160.SS | Kinco Automation Shanghai Co Ltd | 0.01 | 2.06 | 2.05 |
| 002161.SZ | Invengo Information Technology Co Ltd | 0.2 | 0.91 | 0.77 |
| 002972.SZ | Shenzhen Keanda Electronic Technology Corp Ltd | 0.02 | 0.97 | 0.96 |
| 300445.SZ | Beijing ConST Instruments Technology Inc | 0 | 1.55 | 1.55 |
| 300449.SZ | Beijing Hanbang Technology Corp | 0.03 | 1.18 | 1.14 |
| 300656.SZ | Shenzhen MinDe Electronics Technology Ltd | 0.1 | 1.3 | 1.19 |
| 300897.SZ | Hangzhou Seck Intelligent Technology Co Ltd | 0.03 | 1.58 | 1.54 |
| 603015.SS | Ningbo Techmation Co Ltd | 0.1 | 0.89 | 0.81 |
| 603773.SS | WG Tech JiangXi Co Ltd | 0.37 | 1.44 | 1.08 |
| 688056.SS | Beijing LabTech Instruments Co Ltd | 0 | 1.34 | 1.34 |
| Low | High | |
| Unlevered beta | 1.11 | 1.25 |
| Relevered beta | 1.12 | 1.25 |
| Adjusted relevered beta | 1.08 | 1.17 |
688160.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 688160.SS:
cost_of_equity (10.65%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.08) + 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.