000560.SZ WACC - Weighted Average Cost of Capital
The WACC of 5I5j Holding Group Co Ltd (000560.SZ) is 6.0%.
| Range | Selected | |
| Cost of equity | 8.4% - 14.4% | 11.4% |
| Tax rate | 27.7% - 37.0% | 32.35% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.2% - 6.8% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.93 | 1.5 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.4% | 14.4% |
| Tax rate | 27.7% | 37.0% |
| Debt/Equity ratio | 2.08 | 2.08 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.2% | 6.8% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 000560.SZ | 5I5j Holding Group Co Ltd | 2.08 | 1.45 | 0.61 |
| 000517.SZ | Rongan Property Co Ltd | 0.52 | 1.66 | 1.23 |
| 000620.SZ | Macrolink Culturaltainment Development Co Ltd | 0.22 | 1.74 | 1.52 |
| 1622.HK | Redco Properties Group Ltd | 35.47 | 0.6 | 0.02 |
| 1902.HK | Yincheng International Holding Co Ltd | 178.86 | 0.42 | 0 |
| 2019.HK | Dexin China Holdings Company Ltd | 114.64 | 1.52 | 0.02 |
| 2608.HK | Sunshine 100 China Holdings Ltd | 961.49 | 1.9 | 0 |
| 600094.SS | Greattown Holdings Ltd | 0.41 | 1.15 | 0.9 |
| 600223.SS | Lushang Health Industry Development Co Ltd | 0.05 | 1.32 | 1.28 |
| 600748.SS | Shanghai Industrial Development Co Ltd | 2.26 | 1.54 | 0.61 |
| Low | High | |
| Unlevered beta | 0.37 | 0.73 |
| Relevered beta | 0.9 | 1.75 |
| Adjusted relevered beta | 0.93 | 1.5 |
000560.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 000560.SZ:
cost_of_equity (11.40%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.93) + 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.