688665.SS WACC - Weighted Average Cost of Capital
The WACC of Cubic Sensor and Instrument Co Ltd (688665.SS) is 10.2%.
| Range | Selected | |
| Cost of equity | 8.3% - 12.7% | 10.5% |
| Tax rate | 8.9% - 10.2% | 9.55% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.1% - 12.3% | 10.2% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.92 | 1.27 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.3% | 12.7% |
| Tax rate | 8.9% | 10.2% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.1% | 12.3% |
| Selected WACC | 10.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 688665.SS | Cubic Sensor and Instrument Co Ltd | 0.05 | 1.49 | 1.42 |
| 002996.SZ | Chongqing Shunbo Aluminum Co Ltd | 1.83 | 1.09 | 0.41 |
| 1455.HK | Fourace Industries Group Holdings Ltd | 0.01 | 0.21 | 0.21 |
| 300907.SZ | Kangping Technology Suzhou Co Ltd | 0.07 | 1.21 | 1.14 |
| 300946.SZ | Hengda New Materials Fujian Co Ltd | 0.02 | 1.65 | 1.61 |
| 301.HK | Sanvo Fine Chemicals Group Ltd | 0.48 | -0.09 | -0.06 |
| 605133.SS | Jiangsu Rongtai Industry Co Ltd | 0.11 | 1.42 | 1.29 |
| 688607.SS | CareRay Digital Medical Technology Co Ltd | 0.01 | 1.46 | 1.44 |
| 688687.SS | Beijing Kawin Technology Share-holding Co Ltd | 0.08 | 1.56 | 1.45 |
| 8659.HK | Yik Wo International Holdings Ltd | 0.03 | -0.49 | -0.47 |
| Low | High | |
| Unlevered beta | 0.85 | 1.34 |
| Relevered beta | 0.88 | 1.4 |
| Adjusted relevered beta | 0.92 | 1.27 |
688665.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 688665.SS:
cost_of_equity (10.50%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.92) + 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.