000031.SZ
Grandjoy Holdings Group Co Ltd
Price:  
2.67 
CNY
Volume:  
15,565,312
China | Real Estate Management & Development

000031.SZ WACC - Weighted Average Cost of Capital

The WACC of Grandjoy Holdings Group Co Ltd (000031.SZ) is 4.4%.

The Cost of Equity of Grandjoy Holdings Group Co Ltd (000031.SZ) is 8.7%.
The Cost of Debt of Grandjoy Holdings Group Co Ltd (000031.SZ) is 5%.

RangeSelected
Cost of equity7.3% - 10.1%8.7%
Tax rate25.0% - 25.0%25%
Cost of debt5.0% - 5.0%5%
WACC4.2% - 4.5%4.4%
WACC

000031.SZ WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta0.760.9
Additional risk adjustments0.0%0.5%
Cost of equity7.3%10.1%
Tax rate25.0%25.0%
Debt/Equity ratio
7.257.25
Cost of debt5.0%5.0%
After-tax WACC4.2%4.5%
Selected WACC4.4%

000031.SZ'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 000031.SZ:

cost_of_equity (8.70%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.76) + 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.