600033.SS
Fujian Expressway Development Co Ltd
Price:  
3.63 
CNY
Volume:  
29,331,344.00
China | Transportation Infrastructure
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600033.SS WACC - Weighted Average Cost of Capital

The WACC of Fujian Expressway Development Co Ltd (600033.SS) is 8.1%.

The Cost of Equity of Fujian Expressway Development Co Ltd (600033.SS) is 8.75%.
The Cost of Debt of Fujian Expressway Development Co Ltd (600033.SS) is 5.00%.

Range Selected
Cost of equity 7.10% - 10.40% 8.75%
Tax rate 26.00% - 26.30% 26.15%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.7% - 9.6% 8.1%
WACC

600033.SS WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.72 0.95
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.10% 10.40%
Tax rate 26.00% 26.30%
Debt/Equity ratio 0.15 0.15
Cost of debt 5.00% 5.00%
After-tax WACC 6.7% 9.6%
Selected WACC 8.1%

600033.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 600033.SS:

cost_of_equity (8.75%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.72) + 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.