600814.SS WACC - Weighted Average Cost of Capital
The WACC of Hangzhou Jiebai Group Co Ltd (600814.SS) is 8.0%.
| Range | Selected | |
| Cost of equity | 8.0% - 10.4% | 9.2% |
| Tax rate | 26.7% - 28.1% | 27.4% |
| 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 | 0.87 | 0.94 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.0% | 10.4% |
| Tax rate | 26.7% | 28.1% |
| Debt/Equity ratio | 0.27 | 0.27 |
| 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 |
| 600814.SS | Hangzhou Jiebai Group Co Ltd | 0.27 | 0.98 | 0.82 |
| 002187.SZ | Guangzhou Grandbuy Co Ltd | 0.64 | 1.07 | 0.73 |
| 002277.SZ | Hunan Friendship&Apollo Commercial Co Ltd | 0.73 | 1.6 | 1.05 |
| 3368.HK | PARKSON Retail Group Ltd | 28.98 | 0.96 | 0.04 |
| 600280.SS | Nanjing Central Emporium Group Stocks Co Ltd | 1.73 | 1.26 | 0.56 |
| 600778.SS | Xinjiang Youhao Group Co Ltd | 0.62 | 1.02 | 0.7 |
| 600785.SS | Yinchuan Xinhua Commercial Group Co Ltd | 1.37 | 1.27 | 0.64 |
| 601010.SS | Wenfeng Great World Chain Development Corp | 0.05 | 1.13 | 1.09 |
| 603123.SS | Beijing Cuiwei Tower Co Ltd | 0.38 | 1.22 | 0.95 |
| 848.HK | Maoye International Holdings Ltd | 20.77 | 1.2 | 0.08 |
| Low | High | |
| Unlevered beta | 0.68 | 0.77 |
| Relevered beta | 0.81 | 0.91 |
| Adjusted relevered beta | 0.87 | 0.94 |
600814.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 600814.SS:
cost_of_equity (9.20%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.87) + 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.