600113.SS
Zhe Jiang Dong Ri Ltd Co
Price:  
28.38 
CNY
Volume:  
16,113,502
China | Food & Staples Retailing

600113.SS WACC - Weighted Average Cost of Capital

The WACC of Zhe Jiang Dong Ri Ltd Co (600113.SS) is 6.6%.

The Cost of Equity of Zhe Jiang Dong Ri Ltd Co (600113.SS) is 6.7%.
The Cost of Debt of Zhe Jiang Dong Ri Ltd Co (600113.SS) is 5%.

RangeSelected
Cost of equity5.1% - 8.3%6.7%
Tax rate25.1% - 26.0%25.55%
Cost of debt5.0% - 5.0%5%
WACC5.1% - 8.2%6.6%
WACC

600113.SS WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta0.40.65
Additional risk adjustments0.0%0.5%
Cost of equity5.1%8.3%
Tax rate25.1%26.0%
Debt/Equity ratio
0.030.03
Cost of debt5.0%5.0%
After-tax WACC5.1%8.2%
Selected WACC6.6%

600113.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 600113.SS:

cost_of_equity (6.70%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.4) + 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.