600266.SS
Beijing Urban Construction Investment & Development Co Ltd
Price:  
4.57 
CNY
Volume:  
20,160,764
China | Real Estate Management & Development

600266.SS WACC - Weighted Average Cost of Capital

The WACC of Beijing Urban Construction Investment & Development Co Ltd (600266.SS) is 4.5%.

The Cost of Equity of Beijing Urban Construction Investment & Development Co Ltd (600266.SS) is 10.75%.
The Cost of Debt of Beijing Urban Construction Investment & Development Co Ltd (600266.SS) is 5%.

RangeSelected
Cost of equity9.1% - 12.4%10.75%
Tax rate31.5% - 37.8%34.65%
Cost of debt5.0% - 5.0%5%
WACC4.4% - 4.7%4.5%
WACC

600266.SS WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta1.041.22
Additional risk adjustments0.0%0.5%
Cost of equity9.1%12.4%
Tax rate31.5%37.8%
Debt/Equity ratio
5.015.01
Cost of debt5.0%5.0%
After-tax WACC4.4%4.7%
Selected WACC4.5%

600266.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 600266.SS:

cost_of_equity (10.75%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.04) + 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.