600004.SS
Guangzhou Baiyun International Airport Co Ltd
Price:  
9.34 
CNY
Volume:  
21,872,598
China | Transportation Infrastructure

600004.SS WACC - Weighted Average Cost of Capital

The WACC of Guangzhou Baiyun International Airport Co Ltd (600004.SS) is 8.3%.

The Cost of Equity of Guangzhou Baiyun International Airport Co Ltd (600004.SS) is 8.85%.
The Cost of Debt of Guangzhou Baiyun International Airport Co Ltd (600004.SS) is 5%.

RangeSelected
Cost of equity7.3% - 10.4%8.85%
Tax rate27.6% - 28.3%27.95%
Cost of debt5.0% - 5.0%5%
WACC7.0% - 9.7%8.3%
WACC

600004.SS WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta0.760.94
Additional risk adjustments0.0%0.5%
Cost of equity7.3%10.4%
Tax rate27.6%28.3%
Debt/Equity ratio
0.110.11
Cost of debt5.0%5.0%
After-tax WACC7.0%9.7%
Selected WACC8.3%

600004.SS'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 600004.SS:

cost_of_equity (8.85%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.76) + 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.