300577.SZ
Anhui Korrun Co Ltd
Price:  
20.16 
CNY
Volume:  
1,360,020
China | Textiles, Apparel & Luxury Goods

300577.SZ WACC - Weighted Average Cost of Capital

The WACC of Anhui Korrun Co Ltd (300577.SZ) is 8.9%.

The Cost of Equity of Anhui Korrun Co Ltd (300577.SZ) is 10.45%.
The Cost of Debt of Anhui Korrun Co Ltd (300577.SZ) is 5%.

RangeSelected
Cost of equity9.1% - 11.8%10.45%
Tax rate18.8% - 22.3%20.55%
Cost of debt5.0% - 5.0%5%
WACC7.9% - 9.9%8.9%
WACC

300577.SZ WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta1.051.14
Additional risk adjustments0.0%0.5%
Cost of equity9.1%11.8%
Tax rate18.8%22.3%
Debt/Equity ratio
0.320.32
Cost of debt5.0%5.0%
After-tax WACC7.9%9.9%
Selected WACC8.9%

300577.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 300577.SZ:

cost_of_equity (10.45%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.05) + 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.