600077.SS WACC - Weighted Average Cost of Capital
The WACC of Sundy Land Investment Co Ltd (600077.SS) is 5.8%.
| Range | Selected | |
| Cost of equity | 42.6% - 71.4% | 57% |
| Tax rate | 32.4% - 38.6% | 35.5% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.2% - 6.3% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 6.51 | 9.5 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 42.6% | 71.4% |
| Tax rate | 32.4% | 38.6% |
| Debt/Equity ratio | 19.94 | 19.94 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.2% | 6.3% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 600077.SS | Sundy Land Investment Co Ltd | 19.94 | 1.54 | 0.11 |
| 000667.SZ | Myhome Real Estate Development Group Co Ltd | 2.89 | 1.19 | 0.41 |
| 000720.SZ | Shandong Xinneng Taishan Power Generation Co Ltd | 0.58 | 1.12 | 0.81 |
| 000838.SZ | CASIN Real Estate Development Group Co Ltd | 0.31 | 1.61 | 1.33 |
| 000863.SZ | Sanxiang Impression Co Ltd | 0.09 | 1.17 | 1.1 |
| 002016.SZ | Guangdong Shirongzhaoye Co Ltd | 0.13 | 1.5 | 1.38 |
| 002133.SZ | Cosmos Group Co Ltd | 0.93 | 1.41 | 0.88 |
| 600393.SS | Guangzhou Yuetai Group Co Ltd | 4.69 | 1.47 | 0.36 |
| 600503.SS | Deluxe Family Co Ltd | 0.08 | 1.66 | 1.57 |
| 798.HK | China Electronics Optics Valley Union Holding Co Ltd | 4.78 | 0.76 | 0.18 |
| Low | High | |
| Unlevered beta | 0.65 | 0.97 |
| Relevered beta | 9.22 | 13.69 |
| Adjusted relevered beta | 6.51 | 9.5 |
600077.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 600077.SS:
cost_of_equity (57.00%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (6.51) + 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.