600106.SS
Chongqing Road and Bridge Co Ltd
Price:  
5.47 
CNY
Volume:  
24,252,000
China | Transportation Infrastructure

600106.SS WACC - Weighted Average Cost of Capital

The WACC of Chongqing Road and Bridge Co Ltd (600106.SS) is 6.1%.

The Cost of Equity of Chongqing Road and Bridge Co Ltd (600106.SS) is 6.45%.
The Cost of Debt of Chongqing Road and Bridge Co Ltd (600106.SS) is 5%.

RangeSelected
Cost of equity5.2% - 7.7%6.45%
Tax rate8.8% - 9.2%9%
Cost of debt5.0% - 5.0%5%
WACC5.1% - 7.1%6.1%
WACC

600106.SS WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta0.420.57
Additional risk adjustments0.0%0.5%
Cost of equity5.2%7.7%
Tax rate8.8%9.2%
Debt/Equity ratio
0.230.23
Cost of debt5.0%5.0%
After-tax WACC5.1%7.1%
Selected WACC6.1%

600106.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 600106.SS:

cost_of_equity (6.45%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.42) + 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.