600530.SS
Shanghai Jiaoda Onlly Co Ltd
Price:  
8.68 
CNY
Volume:  
15,973,900
China | Personal Products

600530.SS WACC - Weighted Average Cost of Capital

The WACC of Shanghai Jiaoda Onlly Co Ltd (600530.SS) is 7.3%.

The Cost of Equity of Shanghai Jiaoda Onlly Co Ltd (600530.SS) is 7.4%.
The Cost of Debt of Shanghai Jiaoda Onlly Co Ltd (600530.SS) is 5%.

RangeSelected
Cost of equity6.5% - 8.3%7.4%
Tax rate5.2% - 5.9%5.55%
Cost of debt5.0% - 5.0%5%
WACC6.4% - 8.2%7.3%
WACC

600530.SS WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta0.620.65
Additional risk adjustments0.0%0.5%
Cost of equity6.5%8.3%
Tax rate5.2%5.9%
Debt/Equity ratio
0.030.03
Cost of debt5.0%5.0%
After-tax WACC6.4%8.2%
Selected WACC7.3%

600530.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 600530.SS:

cost_of_equity (7.40%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.62) + 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.