688396.SS
China Resources Microelectronics Ltd
Price:  
46.07 
CNY
Volume:  
3,793,917.00
China | Semiconductors & Semiconductor Equipment
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688396.SS WACC - Weighted Average Cost of Capital

The WACC of China Resources Microelectronics Ltd (688396.SS) is 10.5%.

The Cost of Equity of China Resources Microelectronics Ltd (688396.SS) is 10.70%.
The Cost of Debt of China Resources Microelectronics Ltd (688396.SS) is 5.00%.

Range Selected
Cost of equity 9.50% - 11.90% 10.70%
Tax rate 2.20% - 3.10% 2.65%
Cost of debt 5.00% - 5.00% 5.00%
WACC 9.3% - 11.6% 10.5%
WACC

688396.SS WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 1.11 1.15
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.50% 11.90%
Tax rate 2.20% 3.10%
Debt/Equity ratio 0.03 0.03
Cost of debt 5.00% 5.00%
After-tax WACC 9.3% 11.6%
Selected WACC 10.5%

688396.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 688396.SS:

cost_of_equity (10.70%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.11) + 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.