600676.SS WACC - Weighted Average Cost of Capital
The WACC of Shanghai Jiao Yun Group Co Ltd (600676.SS) is 10.1%.
| Range | Selected | |
| Cost of equity | 9.9% - 12.4% | 11.15% |
| Tax rate | 25.0% - 25.0% | 25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.1% - 11.2% | 10.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.18 | 1.22 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.9% | 12.4% |
| Tax rate | 25.0% | 25.0% |
| Debt/Equity ratio | 0.17 | 0.17 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.1% | 11.2% |
| Selected WACC | 10.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 600676.SS | Shanghai Jiao Yun Group Co Ltd | 0.17 | 1.33 | 1.18 |
| 000030.SZ | FAWER Automotive Parts Ltd Co | 0.32 | 1.23 | 0.99 |
| 000700.SZ | Jiangnan Mould & Plastic Technology Co Ltd | 0.35 | 1.35 | 1.07 |
| 000901.SZ | Aerospace Hi-Tech Holding Group Co Ltd | 0.17 | 1.35 | 1.2 |
| 001696.SZ | Chongqing Zongshen Power Machinery Co Ltd | 0.11 | 1.31 | 1.21 |
| 002611.SZ | Guangdong Dongfang Precision Science & Technology Co Ltd | 0.03 | 0.57 | 0.55 |
| 600081.SS | Dongfeng Electronic Technology Co Ltd | 0.14 | 1.29 | 1.17 |
| 600151.SS | Shanghai Aerospace Automobile Electromechanical Co Ltd | 0.17 | 1.77 | 1.57 |
| 600480.SS | Ling Yun Industrial Corp Ltd | 0.23 | 1.53 | 1.3 |
| 603013.SS | YAPP Automotive Systems Co Ltd | 0.02 | 1.08 | 1.07 |
| Low | High | |
| Unlevered beta | 1.13 | 1.19 |
| Relevered beta | 1.27 | 1.33 |
| Adjusted relevered beta | 1.18 | 1.22 |
600676.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 600676.SS:
cost_of_equity (11.15%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.18) + 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.