600778.SS
Xinjiang Youhao Group Co Ltd
Price:  
6.62 
CNY
Volume:  
13,581,368
China | Multiline Retail

600778.SS WACC - Weighted Average Cost of Capital

The WACC of Xinjiang Youhao Group Co Ltd (600778.SS) is 7.6%.

The Cost of Equity of Xinjiang Youhao Group Co Ltd (600778.SS) is 9.95%.
The Cost of Debt of Xinjiang Youhao Group Co Ltd (600778.SS) is 5%.

RangeSelected
Cost of equity8.7% - 11.2%9.95%
Tax rate20.0% - 29.1%24.55%
Cost of debt5.0% - 5.0%5%
WACC6.9% - 8.4%7.6%
WACC

600778.SS WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta0.981.05
Additional risk adjustments0.0%0.5%
Cost of equity8.7%11.2%
Tax rate20.0%29.1%
Debt/Equity ratio
0.580.58
Cost of debt5.0%5.0%
After-tax WACC6.9%8.4%
Selected WACC7.6%

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.