600657.SS
Cinda Real Estate Co Ltd
Price:  
3.84 
CNY
Volume:  
10,732,100
China | Real Estate Management & Development

600657.SS WACC - Weighted Average Cost of Capital

The WACC of Cinda Real Estate Co Ltd (600657.SS) is 3.8%.

The Cost of Equity of Cinda Real Estate Co Ltd (600657.SS) is 6.6%.
The Cost of Debt of Cinda Real Estate Co Ltd (600657.SS) is 5%.

RangeSelected
Cost of equity5.0% - 8.2%6.6%
Tax rate37.9% - 42.6%40.25%
Cost of debt5.0% - 5.0%5%
WACC3.5% - 4.0%3.8%
WACC

600657.SS WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta0.380.63
Additional risk adjustments0.0%0.5%
Cost of equity5.0%8.2%
Tax rate37.9%42.6%
Debt/Equity ratio
3.63.6
Cost of debt5.0%5.0%
After-tax WACC3.5%4.0%
Selected WACC3.8%

600657.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 600657.SS:

cost_of_equity (6.60%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.38) + 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.