600323.SS
Grandblue Environment Co Ltd
Price:  
23.28 
CNY
Volume:  
3,902,269.00
China | Water Utilities
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600323.SS WACC - Weighted Average Cost of Capital

The WACC of Grandblue Environment Co Ltd (600323.SS) is 6.3%.

The Cost of Equity of Grandblue Environment Co Ltd (600323.SS) is 8.35%.
The Cost of Debt of Grandblue Environment Co Ltd (600323.SS) is 5.00%.

Range Selected
Cost of equity 6.80% - 9.90% 8.35%
Tax rate 18.10% - 19.00% 18.55%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.5% - 7.1% 6.3%
WACC

600323.SS WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.68 0.88
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 9.90%
Tax rate 18.10% 19.00%
Debt/Equity ratio 0.9 0.9
Cost of debt 5.00% 5.00%
After-tax WACC 5.5% 7.1%
Selected WACC 6.3%

600323.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 600323.SS:

cost_of_equity (8.35%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.68) + 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.