600761.SS WACC - Weighted Average Cost of Capital
The WACC of Anhui Heli Co Ltd (600761.SS) is 8.0%.
| Range | Selected | |
| Cost of equity | 7.8% - 10.3% | 9.05% |
| Tax rate | 13.1% - 13.6% | 13.35% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.1% - 9.0% | 8.0% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.84 | 0.92 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 10.3% |
| Tax rate | 13.1% | 13.6% |
| Debt/Equity ratio | 0.28 | 0.28 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.1% | 9.0% |
| Selected WACC | 8.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 600761.SS | Anhui Heli Co Ltd | 0.28 | 1.02 | 0.82 |
| 000528.SZ | Guangxi Liugong Machinery Co Ltd | 0.81 | 0.75 | 0.44 |
| 000680.SZ | Shantui Construction Machinery Co Ltd | 0.63 | 0.59 | 0.38 |
| 000903.SZ | Kunming Yunnei Power Co Ltd | 0.83 | 1.12 | 0.65 |
| 000957.SZ | Zhongtong Bus Co Ltd | 0.35 | 1.14 | 0.88 |
| 002097.SZ | Sunward Intelligent Equipment Co Ltd | 1.31 | 1.41 | 0.66 |
| 600169.SS | Taiyuan Heavy Industry Co Ltd | 2.1 | 1.28 | 0.45 |
| 600686.SS | Xiamen King Long Motor Group Co Ltd | 1.19 | 1.12 | 0.55 |
| 600967.SS | Inner Mongolia First Machinery Group Co Ltd | 0.08 | 1.12 | 1.05 |
| 603298.SS | Hangcha Group Co Ltd | 0.07 | 0.84 | 0.79 |
| Low | High | |
| Unlevered beta | 0.61 | 0.71 |
| Relevered beta | 0.76 | 0.88 |
| Adjusted relevered beta | 0.84 | 0.92 |
600761.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 600761.SS:
cost_of_equity (9.05%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.84) + 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.