300740.SZ
Yujiahui Co Ltd
Price:  
12.67 
CNY
Volume:  
15,237,051.00
China | Personal Products
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300740.SZ WACC - Weighted Average Cost of Capital

The WACC of Yujiahui Co Ltd (300740.SZ) is 9.5%.

The Cost of Equity of Yujiahui Co Ltd (300740.SZ) is 11.05%.
The Cost of Debt of Yujiahui Co Ltd (300740.SZ) is 5.00%.

Range Selected
Cost of equity 9.70% - 12.40% 11.05%
Tax rate 13.70% - 14.30% 14.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.5% - 10.5% 9.5%
WACC

300740.SZ WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 1.15 1.23
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.70% 12.40%
Tax rate 13.70% 14.30%
Debt/Equity ratio 0.3 0.3
Cost of debt 5.00% 5.00%
After-tax WACC 8.5% 10.5%
Selected WACC 9.5%

300740.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 300740.SZ:

cost_of_equity (11.05%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.15) + 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.