000799.SZ
Jiugui Liquor Co Ltd
Price:  
44.79 
CNY
Volume:  
11,566,387
China | Beverages

000799.SZ WACC - Weighted Average Cost of Capital

The WACC of Jiugui Liquor Co Ltd (000799.SZ) is 11.1%.

The Cost of Equity of Jiugui Liquor Co Ltd (000799.SZ) is 11.1%.
The Cost of Debt of Jiugui Liquor Co Ltd (000799.SZ) is 5%.

RangeSelected
Cost of equity9.0% - 13.2%11.1%
Tax rate24.8% - 24.9%24.85%
Cost of debt5.0% - 5.0%5%
WACC8.9% - 13.2%11.1%
WACC

000799.SZ WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta1.031.34
Additional risk adjustments0.0%0.5%
Cost of equity9.0%13.2%
Tax rate24.8%24.9%
Debt/Equity ratio
00
Cost of debt5.0%5.0%
After-tax WACC8.9%13.2%
Selected WACC11.1%

000799.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 000799.SZ:

cost_of_equity (11.10%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.03) + 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.