000897.SZ WACC - Weighted Average Cost of Capital
The WACC of Tianjin Jinbin Development Co Ltd (000897.SZ) is 9.8%.
| Range | Selected | |
| Cost of equity | 8.5% - 11.4% | 9.95% |
| Tax rate | 21.6% - 24.4% | 23% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.4% - 11.2% | 9.8% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.95 | 1.08 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.5% | 11.4% |
| Tax rate | 21.6% | 24.4% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.4% | 11.2% |
| Selected WACC | 9.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 000897.SZ | Tianjin Jinbin Development Co Ltd | 0.02 | 1.27 | 1.25 |
| 000573.SZ | DongGuan Winnerway Industrial Zone Co Ltd | 0.16 | -0.07 | -0.06 |
| 000965.SZ | Tianjin Tianbao Infrastructure Co Ltd | 0.65 | 1.44 | 0.95 |
| 600159.SS | Beijing Dalong Weiye Real Estate Development Co Ltd | 0.05 | 1.17 | 1.12 |
| 600173.SS | Wolong Real Estate Group Co Ltd | 0.12 | 0.91 | 0.83 |
| 600568.SS | Zhongzhu Healthcare Holding Co Ltd | 0.04 | 0.64 | 0.62 |
| 600692.SS | Shang Hai Ya Tong Co Ltd | 0.17 | 1.63 | 1.44 |
| 600716.SS | Jiangsu Phoenix Property Investment Co Ltd | 0.17 | 1.23 | 1.09 |
| 600791.SS | BEH-Property Co Ltd | 4.79 | 0.98 | 0.21 |
| 600807.SS | Jinan High-tech Development Co Ltd | 0.04 | 1.3 | 1.27 |
| Low | High | |
| Unlevered beta | 0.91 | 1.1 |
| Relevered beta | 0.93 | 1.12 |
| Adjusted relevered beta | 0.95 | 1.08 |
000897.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 000897.SZ:
cost_of_equity (9.95%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.95) + 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.