600361.SS
Beijinghualian Hypermarket Co Ltd
Price:  
3.86 
CNY
Volume:  
23,133,088.00
China | Food & Staples Retailing
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600361.SS WACC - Weighted Average Cost of Capital

The WACC of Beijinghualian Hypermarket Co Ltd (600361.SS) is 6.4%.

The Cost of Equity of Beijinghualian Hypermarket Co Ltd (600361.SS) is 7.60%.
The Cost of Debt of Beijinghualian Hypermarket Co Ltd (600361.SS) is 5.00%.

Range Selected
Cost of equity 6.00% - 9.20% 7.60%
Tax rate 21.30% - 23.50% 22.40%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.3% - 7.4% 6.4%
WACC

600361.SS WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.54 0.77
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.00% 9.20%
Tax rate 21.30% 23.50%
Debt/Equity ratio 0.48 0.48
Cost of debt 5.00% 5.00%
After-tax WACC 5.3% 7.4%
Selected WACC 6.4%

600361.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 600361.SS:

cost_of_equity (7.60%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.54) + 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.