600269.SS
Jiangxi Ganyue Expressway Co Ltd
Price:  
5.14 
CNY
Volume:  
16,135,317.00
China | Transportation Infrastructure
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600269.SS WACC - Weighted Average Cost of Capital

The WACC of Jiangxi Ganyue Expressway Co Ltd (600269.SS) is 5.6%.

The Cost of Equity of Jiangxi Ganyue Expressway Co Ltd (600269.SS) is 7.70%.
The Cost of Debt of Jiangxi Ganyue Expressway Co Ltd (600269.SS) is 5.00%.

Range Selected
Cost of equity 6.40% - 9.00% 7.70%
Tax rate 29.60% - 31.10% 30.35%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.0% - 6.3% 5.6%
WACC

600269.SS WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.61 0.75
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.40% 9.00%
Tax rate 29.60% 31.10%
Debt/Equity ratio 0.99 0.99
Cost of debt 5.00% 5.00%
After-tax WACC 5.0% 6.3%
Selected WACC 5.6%

600269.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 600269.SS:

cost_of_equity (7.70%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.61) + 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.