600330.SS
TDG Holding Co Ltd
Price:  
7.48 
CNY
Volume:  
43,313,016
China | Electronic Equipment, Instruments & Components

600330.SS WACC - Weighted Average Cost of Capital

The WACC of TDG Holding Co Ltd (600330.SS) is 10.6%.

The Cost of Equity of TDG Holding Co Ltd (600330.SS) is 11.65%.
The Cost of Debt of TDG Holding Co Ltd (600330.SS) is 5%.

RangeSelected
Cost of equity10.3% - 13.0%11.65%
Tax rate8.7% - 9.6%9.15%
Cost of debt5.0% - 5.0%5%
WACC9.4% - 11.7%10.6%
WACC

600330.SS WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta1.251.31
Additional risk adjustments0.0%0.5%
Cost of equity10.3%13.0%
Tax rate8.7%9.6%
Debt/Equity ratio
0.190.19
Cost of debt5.0%5.0%
After-tax WACC9.4%11.7%
Selected WACC10.6%

600330.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 600330.SS:

cost_of_equity (11.65%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.25) + 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.