600455.SS WACC - Weighted Average Cost of Capital
The WACC of ButOne Information Corporation XiAn (600455.SS) is 5.6%.
| Range | Selected | |
| Cost of equity | 5.2% - 6.9% | 6.05% |
| Tax rate | 25.0% - 25.0% | 25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.9% - 6.2% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.42 | 0.45 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 6.9% |
| Tax rate | 25.0% | 25.0% |
| Debt/Equity ratio | 0.29 | 0.29 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.9% | 6.2% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 600455.SS | ButOne Information Corporation XiAn | 0.29 | 0.95 | 0.78 |
| 1449.HK | Leader Education Ltd | 7.86 | 0.61 | 0.09 |
| 1525.HK | Shanghai Gench Education Group Ltd | 0.84 | 0.24 | 0.15 |
| 1593.HK | Chen Lin Education Group Holdings Ltd | 2 | 0.02 | 0.01 |
| 1598.HK | China 21st Century Education Group Ltd | 7.94 | 0.7 | 0.1 |
| 1758.HK | Bojun Education Company Ltd | 10.45 | -0.36 | -0.04 |
| 1851.HK | China Gingko Education Group Company Ltd | 0.57 | 0.16 | 0.11 |
| 1871.HK | China Oriented International Holdings Ltd | 0.4 | 0.39 | 0.3 |
| 1969.HK | China Chunlai Education Group Co Ltd | 0.48 | 0.22 | 0.16 |
| 2779.HK | China Xinhua Education Group Ltd | 0.66 | 0.8 | 0.54 |
| Low | High | |
| Unlevered beta | 0.11 | 0.15 |
| Relevered beta | 0.13 | 0.18 |
| Adjusted relevered beta | 0.42 | 0.45 |
600455.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 600455.SS:
cost_of_equity (6.05%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.42) + 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.