601933.SS WACC - Weighted Average Cost of Capital
The WACC of Yonghui Superstores Co Ltd (601933.SS) is 7.5%.
| Range | Selected | |
| Cost of equity | 7.5% - 10.2% | 8.85% |
| Tax rate | 6.0% - 7.1% | 6.55% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.6% - 8.4% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.79 | 0.92 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 10.2% |
| Tax rate | 6.0% | 7.1% |
| Debt/Equity ratio | 0.48 | 0.48 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.6% | 8.4% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 601933.SS | Yonghui Superstores Co Ltd | 0.48 | 2.11 | 1.45 |
| 002264.SZ | New Huadu Supercenter Co Ltd | 0.33 | 1.69 | 1.29 |
| 139480.KS | E-Mart Inc | 5.19 | 0.19 | 0.03 |
| 600361.SS | Beijinghualian Hypermarket Co Ltd | 0.8 | 1.42 | 0.81 |
| 600827.SS | Shanghai Bailian Group Co Ltd | 0.85 | 1.07 | 0.6 |
| 602.HK | Jiahua Stores Holdings Ltd | 14.69 | 1.09 | 0.07 |
| 603031.SS | Anhui Andeli Department Store Co Ltd | 0.42 | 1.16 | 0.84 |
| 6808.HK | Sun Art Retail Group Ltd | 0.46 | 0.79 | 0.56 |
| 980.HK | Lianhua Supermarket Holdings Co Ltd | 8.62 | 1.23 | 0.14 |
| BJC.BK | Berli Jucker PCL | 1.94 | 0.97 | 0.35 |
| MAKRO.BK | Siam Makro PCL | 0.43 | 0.86 | 0.61 |
| Low | High | |
| Unlevered beta | 0.56 | 0.61 |
| Relevered beta | 0.69 | 0.88 |
| Adjusted relevered beta | 0.79 | 0.92 |
601933.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 601933.SS:
cost_of_equity (8.85%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.79) + 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.