000564.SZ
CCOOP Group Co Ltd
Price:  
2.65 
CNY
Volume:  
921,691,600.00
China | Multiline Retail
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000564.SZ WACC - Weighted Average Cost of Capital

The WACC of CCOOP Group Co Ltd (000564.SZ) is 7.5%.

The Cost of Equity of CCOOP Group Co Ltd (000564.SZ) is 8.00%.
The Cost of Debt of CCOOP Group Co Ltd (000564.SZ) is 5.00%.

Range Selected
Cost of equity 5.40% - 10.60% 8.00%
Tax rate 5.70% - 12.50% 9.10%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.3% - 9.7% 7.5%
WACC

000564.SZ WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.44 0.97
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.40% 10.60%
Tax rate 5.70% 12.50%
Debt/Equity ratio 0.16 0.16
Cost of debt 5.00% 5.00%
After-tax WACC 5.3% 9.7%
Selected WACC 7.5%

000564.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 000564.SZ:

cost_of_equity (8.00%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.44) + 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.