688568.SS WACC - Weighted Average Cost of Capital
The WACC of Geovis Technology Co Ltd (688568.SS) is 9.9%.
| Range | Selected | |
| Cost of equity | 8.5% - 11.9% | 10.2% |
| Tax rate | 6.6% - 7.7% | 7.15% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.3% - 11.6% | 9.9% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.95 | 1.15 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.5% | 11.9% |
| Tax rate | 6.6% | 7.7% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.3% | 11.6% |
| Selected WACC | 9.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 688568.SS | Geovis Technology Co Ltd | 0.04 | 2.34 | 2.25 |
| 002063.SZ | YGSOFT Inc | 0.01 | 1.34 | 1.33 |
| 1588.HK | Chanjet Information Technology Co Ltd | 0 | 0.69 | 0.69 |
| 300096.SZ | YLZ Information Technology Co Ltd | 0.01 | 0.93 | 0.93 |
| 300209.SZ | TIZA Information Industry Corporation Inc | 0.01 | 0.28 | 0.28 |
| 300513.SZ | Beijing E-techstar Co Ltd | 0.39 | 1.46 | 1.07 |
| 300663.SZ | Client Service International Inc | 0.16 | 1.79 | 1.55 |
| 300687.SZ | Guangzhou Sie Consulting Co Ltd | 0.05 | 1.59 | 1.53 |
| 603636.SS | Linewell Software Co Ltd | 0.23 | 1.01 | 0.83 |
| 688555.SS | Essence Information Technology Co Ltd | 1.37 | -1.25 | -0.55 |
| 688588.SS | Linkage Software Co Ltd | 0.06 | 1.85 | 1.75 |
| Low | High | |
| Unlevered beta | 0.93 | 1.33 |
| Relevered beta | 0.93 | 1.22 |
| Adjusted relevered beta | 0.95 | 1.15 |
688568.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 688568.SS:
cost_of_equity (10.20%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.95) + 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.