600609.SS WACC - Weighted Average Cost of Capital
The WACC of Shenyang Jinbei Automotive Co Ltd (600609.SS) is 10.1%.
| Range | Selected | |
| Cost of equity | 8.9% - 11.7% | 10.3% |
| Tax rate | 6.8% - 9.9% | 8.35% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.8% - 11.5% | 10.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.01 | 1.12 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.9% | 11.7% |
| Tax rate | 6.8% | 9.9% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.8% | 11.5% |
| Selected WACC | 10.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 600609.SS | Shenyang Jinbei Automotive Co Ltd | 0.03 | 1.63 | 1.58 |
| 000572.SZ | Haima Automobile Co.,Ltd | 0.22 | 1.21 | 1.01 |
| 000980.SZ | Zotye Automobile Co Ltd | 0.2 | 2.08 | 1.75 |
| 1122.HK | Qingling Motors Co Ltd | 0.01 | 0.72 | 0.72 |
| 300825.SZ | IAT Automobile Technology Co Ltd | 0.1 | 1.47 | 1.34 |
| 600006.SS | DongFeng Automobile Co Ltd | 0.23 | 1.18 | 0.97 |
| 600303.SS | Liaoning SG Automotive Group Co Ltd | 0.33 | 0.84 | 0.64 |
| 600733.SS | BAIC BluePark New Energy Technology Co Ltd | 0.45 | 1.65 | 1.16 |
| 601127.SS | CHONGQING SOKON INDUSTRY GROUP STOCK Co Ltd | 0.21 | 0.93 | 0.78 |
| 601777.SS | Lifan Technology Group Co Ltd | 0.11 | 1.26 | 1.14 |
| Low | High | |
| Unlevered beta | 0.99 | 1.15 |
| Relevered beta | 1.01 | 1.18 |
| Adjusted relevered beta | 1.01 | 1.12 |
600609.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 600609.SS:
cost_of_equity (10.30%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.01) + 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.