600094.SS WACC - Weighted Average Cost of Capital
The WACC of Greattown Holdings Ltd (600094.SS) is 5.6%.
| Range | Selected | |
| Cost of equity | 5.3% - 7.8% | 6.55% |
| Tax rate | 32.1% - 36.8% | 34.45% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.7% - 6.4% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.34 | 0.51 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 5.3% | 7.8% |
| Tax rate | 32.1% | 36.8% |
| Debt/Equity ratio | 0.44 | 0.44 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.7% | 6.4% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 600094.SS | Greattown Holdings Ltd | 0.44 | 1.16 | 0.9 |
| 000517.SZ | Rongan Property Co Ltd | 0.47 | 1.61 | 1.22 |
| 000620.SZ | Macrolink Culturaltainment Development Co Ltd | 0.22 | 1.51 | 1.32 |
| 000736.SZ | CCCG Real Estate Corp Ltd | 11.09 | 1.44 | 0.17 |
| 1107.HK | Modern Land (China) Co Ltd | 411.84 | 0.21 | 0 |
| 1862.HK | Jingrui Holdings Ltd | 1027.59 | 0.39 | 0 |
| 2019.HK | Dexin China Holdings Company Ltd | 114.19 | 1.52 | 0.02 |
| 2608.HK | Sunshine 100 China Holdings Ltd | 1149.22 | 2.06 | 0 |
| 3639.HK | Yida China Holdings Ltd | 66.62 | 0.01 | 0 |
| 600708.SS | Bright Real Estate Group Co Ltd | 5.16 | 1.24 | 0.28 |
| Low | High | |
| Unlevered beta | 0.01 | 0.21 |
| Relevered beta | 0.01 | 0.27 |
| Adjusted relevered beta | 0.34 | 0.51 |
600094.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 600094.SS:
cost_of_equity (6.55%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.34) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.