688338.SS WACC - Weighted Average Cost of Capital
The WACC of Beijing Succeeder Technology Inc (688338.SS) is 10.2%.
| Range | Selected | |
| Cost of equity | 8.8% - 11.6% | 10.2% |
| Tax rate | 13.2% - 13.3% | 13.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.8% - 11.6% | 10.2% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1 | 1.12 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.8% | 11.6% |
| Tax rate | 13.2% | 13.3% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.8% | 11.6% |
| Selected WACC | 10.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 688338.SS | Beijing Succeeder Technology Inc | 0 | 1.39 | 1.39 |
| 1501.HK | Shanghai Kindly Medical Instruments Co Ltd | 0.06 | -0.03 | -0.03 |
| 300453.SZ | Jiangxi Sanxin Medtec Co Ltd | 0.08 | 1.03 | 0.97 |
| 300642.SZ | Tellgen Corp | 0.04 | 1.26 | 1.22 |
| 603309.SS | Well Lead Medical Co Ltd | 0.13 | 1.08 | 0.97 |
| 603880.SS | Jiangsu Nanfang Medical Co Ltd | 0.29 | 1.27 | 1.01 |
| 603976.SS | ChongQing Zhengchuan Pharmaceutical Packaging Co Ltd | 0.19 | 1.02 | 0.88 |
| 605369.SS | Zhejiang Gongdong Medical Technology Co Ltd | 0.01 | 1.16 | 1.15 |
| 688013.SS | Touchstone International Medical Science Co Ltd | 0 | 1.3 | 1.3 |
| 688026.SS | Guangzhou Jet Bio-Filtration Co Ltd | 0.16 | 1.45 | 1.27 |
| Low | High | |
| Unlevered beta | 1 | 1.18 |
| Relevered beta | 1 | 1.18 |
| Adjusted relevered beta | 1 | 1.12 |
688338.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 688338.SS:
cost_of_equity (10.20%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1) + 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.