601058.SS
Sailun Group Co Ltd
Price:  
12.98 
CNY
Volume:  
29,086,726
China | Auto Components

601058.SS WACC - Weighted Average Cost of Capital

The WACC of Sailun Group Co Ltd (601058.SS) is 7.9%.

The Cost of Equity of Sailun Group Co Ltd (601058.SS) is 9%.
The Cost of Debt of Sailun Group Co Ltd (601058.SS) is 5%.

RangeSelected
Cost of equity7.7% - 10.3%9%
Tax rate8.0% - 9.8%8.9%
Cost of debt5.0% - 5.0%5%
WACC6.9% - 8.9%7.9%
WACC

601058.SS WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta0.820.93
Additional risk adjustments0.0%0.5%
Cost of equity7.7%10.3%
Tax rate8.0%9.8%
Debt/Equity ratio
0.320.32
Cost of debt5.0%5.0%
After-tax WACC6.9%8.9%
Selected WACC7.9%

601058.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 601058.SS:

cost_of_equity (9.00%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.82) + 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.