600359.SS
Xinjiang Talimu Agriculture Development Co Ltd
Price:  
7.24 
CNY
Volume:  
7,952,100
China | Food Products

600359.SS WACC - Weighted Average Cost of Capital

The WACC of Xinjiang Talimu Agriculture Development Co Ltd (600359.SS) is 8.4%.

The Cost of Equity of Xinjiang Talimu Agriculture Development Co Ltd (600359.SS) is 8.95%.
The Cost of Debt of Xinjiang Talimu Agriculture Development Co Ltd (600359.SS) is 5%.

RangeSelected
Cost of equity7.6% - 10.3%8.95%
Tax rate2.4% - 2.6%2.5%
Cost of debt5.0% - 5.0%5%
WACC7.3% - 9.6%8.4%
WACC

600359.SS WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta0.810.93
Additional risk adjustments0.0%0.5%
Cost of equity7.6%10.3%
Tax rate2.4%2.6%
Debt/Equity ratio
0.140.14
Cost of debt5.0%5.0%
After-tax WACC7.3%9.6%
Selected WACC8.4%

600359.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 600359.SS:

cost_of_equity (8.95%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.81) + 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.