200152.SZ WACC - Weighted Average Cost of Capital
The WACC of Shandong Airlines Co Ltd (200152.SZ) is 4.7%.
| Range | Selected | |
| Cost of equity | 9.5% - 50.5% | 30% |
| Tax rate | 24.4% - 24.6% | 24.5% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.0% - 5.5% | 4.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.12 | 6.57 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.5% | 50.5% |
| Tax rate | 24.4% | 24.6% |
| Debt/Equity ratio | 26.15 | 26.15 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.0% | 5.5% |
| Selected WACC | 4.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 200152.SZ | Shandong Airlines Co Ltd | 26.15 | -0.27 | -0.01 |
| 002928.SZ | China Express Airlines Co Ltd | 1.54 | 1.47 | 0.68 |
| 600115.SS | China Eastern Airlines Corp Ltd | 2.23 | 0.83 | 0.31 |
| 600221.SS | Hainan Airlines Holding Co Ltd | 1.94 | 1.83 | 0.74 |
| 601021.SS | Spring Airlines Co Ltd | 0.35 | 0.84 | 0.66 |
| 603885.SS | JUNEYAO AIRLINES Co Ltd | 1.19 | 1.3 | 0.69 |
| CMPP.JK | AirAsia Indonesia Tbk PT | 9.45 | 0.53 | 0.07 |
| NOK.BK | Nok Airlines PCL | 23.35 | -1.45 | -0.08 |
| THAI.BK | Thai Airways International PCL | 26.57 | 0.91 | 0.04 |
| UTAR.ME | Aviakompaniya UTair PAO | 0.54 | -0.52 | -0.37 |
| Low | High | |
| Unlevered beta | 0.06 | 0.45 |
| Relevered beta | 1.18 | 9.31 |
| Adjusted relevered beta | 1.12 | 6.57 |
200152.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 200152.SZ:
cost_of_equity (30.00%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.12) + 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.