000732.SZ WACC - Weighted Average Cost of Capital
The WACC of Tahoe Group Co Ltd (000732.SZ) is 4.6%.
| Range | Selected | |
| Cost of equity | 23.7% - 59.2% | 41.45% |
| Tax rate | 10.1% - 19.2% | 14.65% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.7% - 4.6% | 4.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 3.44 | 7.79 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 23.7% | 59.2% |
| Tax rate | 10.1% | 19.2% |
| Debt/Equity ratio | 106.9 | 106.9 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.7% | 4.6% |
| Selected WACC | 4.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 000732.SZ | Tahoe Group Co Ltd | 106.9 | 1.75 | 0.02 |
| 000537.SZ | Tianjin Guangyu Development Co Ltd | 3.32 | 1.01 | 0.27 |
| 002244.SZ | Hangzhou Binjiang Real Estate Group Co Ltd | 2.06 | 1.18 | 0.43 |
| 1107.HK | Modern Land (China) Co Ltd | 413.48 | 0.21 | 0 |
| 1862.HK | Jingrui Holdings Ltd | 1031.68 | 0.25 | 0 |
| 2019.HK | Dexin China Holdings Company Ltd | 114.64 | 1.52 | 0.02 |
| 2868.HK | Beijing Capital Land Ltd | 9.23 | 0.85 | 0.1 |
| 600565.SS | DIMA HOLDINGS Co Ltd | 10.55 | 1.51 | 0.15 |
| 600823.SS | Shanghai Shimao Co Ltd | 17.49 | 1.13 | 0.07 |
| 601588.SS | Beijing North Star Co Ltd | 3.89 | 1.18 | 0.28 |
| Low | High | |
| Unlevered beta | 0.05 | 0.12 |
| Relevered beta | 4.64 | 11.13 |
| Adjusted relevered beta | 3.44 | 7.79 |
000732.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 000732.SZ:
cost_of_equity (41.45%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (3.44) + 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.