600327.SS
Wuxi Commercial Mansion Grand Orient Co Ltd
Price:  
5.05 
CNY
Volume:  
25,075,880
China | Specialty Retail

600327.SS WACC - Weighted Average Cost of Capital

The WACC of Wuxi Commercial Mansion Grand Orient Co Ltd (600327.SS) is 6.9%.

The Cost of Equity of Wuxi Commercial Mansion Grand Orient Co Ltd (600327.SS) is 7.7%.
The Cost of Debt of Wuxi Commercial Mansion Grand Orient Co Ltd (600327.SS) is 5%.

RangeSelected
Cost of equity6.3% - 9.1%7.7%
Tax rate24.0% - 26.0%25%
Cost of debt5.0% - 5.0%5%
WACC5.8% - 8.0%6.9%
WACC

600327.SS WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta0.590.77
Additional risk adjustments0.0%0.5%
Cost of equity6.3%9.1%
Tax rate24.0%26.0%
Debt/Equity ratio
0.270.27
Cost of debt5.0%5.0%
After-tax WACC5.8%8.0%
Selected WACC6.9%

600327.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 600327.SS:

cost_of_equity (7.70%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.59) + 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.