688388.SS WACC - Weighted Average Cost of Capital
The WACC of Guangdong JiaYuan Technology Shares Co Ltd (688388.SS) is 9.1%.
| Range | Selected | |
| Cost of equity | 10.1% - 13.1% | 11.6% |
| Tax rate | 13.0% - 15.3% | 14.15% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.1% - 10.1% | 9.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.21 | 1.32 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.1% | 13.1% |
| Tax rate | 13.0% | 15.3% |
| Debt/Equity ratio | 0.53 | 0.53 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.1% | 10.1% |
| Selected WACC | 9.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 688388.SS | Guangdong JiaYuan Technology Shares Co Ltd | 0.53 | 2.16 | 1.48 |
| 002484.SZ | Nantong Jianghai Capacitor Co Ltd | 0.03 | 1.03 | 1.01 |
| 002617.SZ | Roshow Technology Co Ltd | 0.23 | 1.81 | 1.51 |
| 300224.SZ | Yantai Zhenghai Magnetic Material Co Ltd | 0.3 | 1.05 | 0.83 |
| 300748.SZ | Jl Mag Rare-Earth Co Ltd | 0.13 | 1.53 | 1.37 |
| 300763.SZ | Ginlong Technologies Co Ltd | 0.49 | 1.36 | 0.95 |
| 601222.SS | Jiangsu Linyang Energy Co Ltd | 0.44 | 0.55 | 0.4 |
| 603063.SS | Shenzhen Hopewind Electric Co Ltd | 0.13 | 1.16 | 1.04 |
| 603606.SS | Ningbo Orient Wires & Cables Co Ltd | 0.07 | 0.56 | 0.53 |
| 688390.SS | Jiangsu Goodwe Power Supply Technology Co Ltd | 0.41 | 1.73 | 1.27 |
| 688408.SS | Arctech Solar Holding Co Ltd | 0.36 | 0.73 | 0.55 |
| Low | High | |
| Unlevered beta | 0.95 | 1.04 |
| Relevered beta | 1.31 | 1.48 |
| Adjusted relevered beta | 1.21 | 1.32 |
688388.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 688388.SS:
cost_of_equity (11.60%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.21) + 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.