600621.SS
Shanghai Chinafortune Co Ltd
Price:  
15.82 
CNY
Volume:  
30,706,084.00
China | Capital Markets
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600621.SS WACC - Weighted Average Cost of Capital

The WACC of Shanghai Chinafortune Co Ltd (600621.SS) is 7.7%.

The Cost of Equity of Shanghai Chinafortune Co Ltd (600621.SS) is 11.25%.
The Cost of Debt of Shanghai Chinafortune Co Ltd (600621.SS) is 5.00%.

Range Selected
Cost of equity 9.30% - 13.20% 11.25%
Tax rate 18.30% - 22.10% 20.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.8% - 8.6% 7.7%
WACC

600621.SS WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 1.09 1.34
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.30% 13.20%
Tax rate 18.30% 22.10%
Debt/Equity ratio 0.97 0.97
Cost of debt 5.00% 5.00%
After-tax WACC 6.8% 8.6%
Selected WACC 7.7%

600621.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 600621.SS:

cost_of_equity (11.25%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.09) + 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.