601919.SS
COSCO SHIPPING Holdings Co Ltd
Price:  
15.48 
CNY
Volume:  
55,717,370
China | Marine

601919.SS WACC - Weighted Average Cost of Capital

The WACC of COSCO SHIPPING Holdings Co Ltd (601919.SS) is 8.8%.

The Cost of Equity of COSCO SHIPPING Holdings Co Ltd (601919.SS) is 10.25%.
The Cost of Debt of COSCO SHIPPING Holdings Co Ltd (601919.SS) is 5%.

RangeSelected
Cost of equity8.8% - 11.7%10.25%
Tax rate16.0% - 17.8%16.9%
Cost of debt5.0% - 5.0%5%
WACC7.7% - 9.9%8.8%
WACC

601919.SS WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta1.011.12
Additional risk adjustments0.0%0.5%
Cost of equity8.8%11.7%
Tax rate16.0%17.8%
Debt/Equity ratio
0.320.32
Cost of debt5.0%5.0%
After-tax WACC7.7%9.9%
Selected WACC8.8%

601919.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 601919.SS:

cost_of_equity (10.25%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.01) + 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.