600495.SS
Jinxi Axle Co Ltd
Price:  
4.89 
CNY
Volume:  
29,635,964
China | Machinery

600495.SS WACC - Weighted Average Cost of Capital

The WACC of Jinxi Axle Co Ltd (600495.SS) is 9.8%.

The Cost of Equity of Jinxi Axle Co Ltd (600495.SS) is 10.1%.
The Cost of Debt of Jinxi Axle Co Ltd (600495.SS) is 5%.

RangeSelected
Cost of equity8.8% - 11.4%10.1%
Tax rate10.7% - 19.3%15%
Cost of debt5.0% - 5.0%5%
WACC8.6% - 11.0%9.8%
WACC

600495.SS WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta11.08
Additional risk adjustments0.0%0.5%
Cost of equity8.8%11.4%
Tax rate10.7%19.3%
Debt/Equity ratio
0.050.05
Cost of debt5.0%5.0%
After-tax WACC8.6%11.0%
Selected WACC9.8%

600495.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 600495.SS:

cost_of_equity (10.10%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1) + 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.