600560.SS
Beijing AriTime Intelligent Control Co Ltd
Price:  
16.17 
CNY
Volume:  
3,764,300
China | Electrical Equipment

600560.SS WACC - Weighted Average Cost of Capital

The WACC of Beijing AriTime Intelligent Control Co Ltd (600560.SS) is 9.5%.

The Cost of Equity of Beijing AriTime Intelligent Control Co Ltd (600560.SS) is 9.6%.
The Cost of Debt of Beijing AriTime Intelligent Control Co Ltd (600560.SS) is 5%.

RangeSelected
Cost of equity8.1% - 11.1%9.6%
Tax rate4.6% - 5.4%5%
Cost of debt5.0% - 5.0%5%
WACC8.0% - 10.9%9.5%
WACC

600560.SS WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta0.891.04
Additional risk adjustments0.0%0.5%
Cost of equity8.1%11.1%
Tax rate4.6%5.4%
Debt/Equity ratio
0.030.03
Cost of debt5.0%5.0%
After-tax WACC8.0%10.9%
Selected WACC9.5%

600560.SS WACC - Detailed calculations of Beta

LowHigh
Unlevered beta0.811.03
Relevered beta0.841.06
Adjusted relevered beta0.891.04

600560.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 600560.SS:

cost_of_equity (9.60%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.89) + 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.