600778.SS WACC - Weighted Average Cost of Capital
The WACC of Xinjiang Youhao Group Co Ltd (600778.SS) is 7.6%.
| Range | Selected | |
| Cost of equity | 8.7% - 11.2% | 9.95% |
| Tax rate | 20.0% - 29.1% | 24.55% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.9% - 8.4% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.98 | 1.05 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.7% | 11.2% |
| Tax rate | 20.0% | 29.1% |
| Debt/Equity ratio | 0.58 | 0.58 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.9% | 8.4% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 600778.SS | Xinjiang Youhao Group Co Ltd | 0.58 | 0.99 | 0.69 |
| 000419.SZ | Changsha Tongcheng Holdings Co Ltd | 0.41 | 0.95 | 0.72 |
| 002277.SZ | Hunan Friendship&Apollo Commercial Co Ltd | 0.72 | 1.46 | 0.95 |
| 3368.HK | PARKSON Retail Group Ltd | 28.12 | 0.92 | 0.04 |
| 600785.SS | Yinchuan Xinhua Commercial Group Co Ltd | 1.34 | 1.29 | 0.65 |
| 600814.SS | Hangzhou Jiebai Group Co Ltd | 0.27 | 0.95 | 0.79 |
| 601010.SS | Wenfeng Great World Chain Development Corp | 0.05 | 1.06 | 1.02 |
| 603101.SS | Xinjiang Wuika Times Department Store Co Ltd | 0.42 | 0.29 | 0.22 |
| 603123.SS | Beijing Cuiwei Tower Co Ltd | 0.24 | 1.26 | 1.07 |
| 848.HK | Maoye International Holdings Ltd | 20.06 | 1.2 | 0.07 |
| Low | High | |
| Unlevered beta | 0.67 | 0.75 |
| Relevered beta | 0.97 | 1.07 |
| Adjusted relevered beta | 0.98 | 1.05 |
600778.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 600778.SS:
cost_of_equity (9.95%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.98) + 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.