688378.SS WACC - Weighted Average Cost of Capital
The WACC of Jilin OLED Material Tech Co Ltd (688378.SS) is 10.0%.
| Range | Selected | |
| Cost of equity | 8.8% - 11.4% | 10.1% |
| Tax rate | 5.9% - 7.7% | 6.8% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.7% - 11.3% | 10.0% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.99 | 1.09 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.8% | 11.4% |
| Tax rate | 5.9% | 7.7% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.7% | 11.3% |
| Selected WACC | 10.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 688378.SS | Jilin OLED Material Tech Co Ltd | 0.02 | 1.73 | 1.71 |
| 000020.SZ | Shenzhen Zhongheng Huafa Co Ltd | 0.04 | 1 | 0.96 |
| 002199.SZ | Zhejiang East Crystal Electronic Co Ltd | 0.12 | 1.09 | 0.98 |
| 002808.SZ | Suzhou Goldengreen Technologies Ltd | 0.04 | 0.24 | 0.24 |
| 300460.SZ | Guangdong Failong Crystal Technology Co Ltd | 0.24 | 1.48 | 1.22 |
| 300615.SZ | Xdc Industries Shenzhen Ltd | 0.02 | 0.89 | 0.88 |
| 300701.SZ | Senba Sensing Technology Co Ltd | 0.01 | 1.62 | 1.6 |
| 300799.SZ | Beijing Zuojiang Technology Co Ltd | 0.33 | 1.35 | 1.04 |
| 300811.SZ | POCO Holding Co Ltd | 0.04 | 1 | 0.97 |
| 300936.SZ | Changzhou Zhongying Science & Technology Co Ltd | 0.01 | 1.68 | 1.67 |
| Low | High | |
| Unlevered beta | 0.97 | 1.11 |
| Relevered beta | 0.99 | 1.13 |
| Adjusted relevered beta | 0.99 | 1.09 |
688378.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 688378.SS:
cost_of_equity (10.10%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.99) + 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.