600733.SS WACC - Weighted Average Cost of Capital
The WACC of BAIC BluePark New Energy Technology Co Ltd (600733.SS) is 8.1%.
| Range | Selected | |
| Cost of equity | 7.2% - 12.1% | 9.65% |
| Tax rate | 0.4% - 0.8% | 0.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.5% - 9.8% | 8.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.73 | 1.18 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.2% | 12.1% |
| Tax rate | 0.4% | 0.8% |
| Debt/Equity ratio | 0.48 | 0.48 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.5% | 9.8% |
| Selected WACC | 8.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 600733.SS | BAIC BluePark New Energy Technology Co Ltd | 0.48 | 1.63 | 1.1 |
| 000550.SZ | Jiangling Motors Corp Ltd | 0.12 | 1.31 | 1.17 |
| 000800.SZ | FAW Jiefang Group Co Ltd | 0.46 | 0.77 | 0.53 |
| 2201.TW | Yulon Motor Co Ltd | 6.88 | 0.84 | 0.11 |
| 489.HK | Dongfeng Motor Group Co Ltd | 3.76 | 1.08 | 0.23 |
| 600006.SS | DongFeng Automobile Co Ltd | 0.23 | 1.19 | 0.97 |
| 601127.SS | CHONGQING SOKON INDUSTRY GROUP STOCK Co Ltd | 0.2 | 0.95 | 0.79 |
| 601777.SS | Lifan Technology Group Co Ltd | 0.12 | 1.33 | 1.2 |
| DRBHCOM.KL | DRB-Hicom Bhd | 6.24 | 1.32 | 0.18 |
| GAZA.ME | Gaz PAO | 3.3 | -0.02 | -0.01 |
| Low | High | |
| Unlevered beta | 0.41 | 0.86 |
| Relevered beta | 0.6 | 1.27 |
| Adjusted relevered beta | 0.73 | 1.18 |
600733.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 600733.SS:
cost_of_equity (9.65%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.73) + 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.