The WACC of STO Express Co Ltd (002468.SZ) is 6.3%.
Range | Selected | |
Cost of equity | 5.9% - 9.0% | 7.45% |
Tax rate | 20.9% - 22.6% | 21.75% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 5.3% - 7.4% | 6.3% |
Category | Low | High |
Long-term bond rate | 2.7% | 3.2% |
Equity market risk premium | 6.1% | 7.1% |
Adjusted beta | 0.53 | 0.75 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.9% | 9.0% |
Tax rate | 20.9% | 22.6% |
Debt/Equity ratio | 0.48 | 0.48 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 5.3% | 7.4% |
Selected WACC | 6.3% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
002468.SZ | STO Express Co Ltd | 0.48 | 0.55 | 0.4 |
002120.SZ | YUNDA Holding Co Ltd | 0.6 | 0.81 | 0.55 |
002320.KS | Hanjin Transportation Co Ltd | 6.69 | 0.48 | 0.08 |
1292.HK | Changan Minsheng APLL Logistics Co Ltd | 1.56 | 0.58 | 0.26 |
1529.HK | Goal Rise Logistics (China) Holdings Ltd | 0.32 | -0.49 | -0.39 |
3399.HK | Guangdong Yueyun Transportation Co Ltd | 3.13 | 0.47 | 0.14 |
600233.SS | YTO Express Group Co Ltd | 0.14 | 0.65 | 0.58 |
603056.SS | DEPPON LOGISTICS Co Ltd | 0.16 | 0.98 | 0.87 |
603128.SS | CTS International Logistics Corp Ltd | 0.19 | 1.07 | 0.93 |
9302.T | Mitsui Soko Holdings Co Ltd | 0.31 | 0.2 | 0.16 |
Low | High | |
Unlevered beta | 0.22 | 0.46 |
Relevered beta | 0.3 | 0.63 |
Adjusted relevered beta | 0.53 | 0.75 |
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 002468.SZ:
cost_of_equity (7.45%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.53) + 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.