600250.SS
Nanjing Textiles Import & Export Corp Ltd
Price:  
8.32 
CNY
Volume:  
13,783,400.00
China | Distributors
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600250.SS WACC - Weighted Average Cost of Capital

The WACC of Nanjing Textiles Import & Export Corp Ltd (600250.SS) is 7.9%.

The Cost of Equity of Nanjing Textiles Import & Export Corp Ltd (600250.SS) is 8.60%.
The Cost of Debt of Nanjing Textiles Import & Export Corp Ltd (600250.SS) is 5.00%.

Range Selected
Cost of equity 7.40% - 9.80% 8.60%
Tax rate 7.90% - 12.80% 10.35%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.9% - 8.8% 7.9%
WACC

600250.SS WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.78 0.85
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.40% 9.80%
Tax rate 7.90% 12.80%
Debt/Equity ratio 0.22 0.22
Cost of debt 5.00% 5.00%
After-tax WACC 6.9% 8.8%
Selected WACC 7.9%

600250.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 600250.SS:

cost_of_equity (8.60%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.78) + 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.