601512.SS
China-Singapore Suzhou Industrial Park Development Group Co Ltd
Price:  
7.36 
CNY
Volume:  
1,704,116
China | Real Estate Management & Development

601512.SS WACC - Weighted Average Cost of Capital

The WACC of China-Singapore Suzhou Industrial Park Development Group Co Ltd (601512.SS) is 6.7%.

The Cost of Equity of China-Singapore Suzhou Industrial Park Development Group Co Ltd (601512.SS) is 9.5%.
The Cost of Debt of China-Singapore Suzhou Industrial Park Development Group Co Ltd (601512.SS) is 5%.

RangeSelected
Cost of equity8.3% - 10.7%9.5%
Tax rate22.9% - 23.6%23.25%
Cost of debt5.0% - 5.0%5%
WACC6.1% - 7.3%6.7%
WACC

601512.SS WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta0.910.98
Additional risk adjustments0.0%0.5%
Cost of equity8.3%10.7%
Tax rate22.9%23.6%
Debt/Equity ratio
0.970.97
Cost of debt5.0%5.0%
After-tax WACC6.1%7.3%
Selected WACC6.7%

601512.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 601512.SS:

cost_of_equity (9.50%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.91) + 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.