603008.SS WACC - Weighted Average Cost of Capital
The WACC of Xilinmen Furniture Co Ltd (603008.SS) is 9.1%.
| Range | Selected | |
| Cost of equity | 9.9% - 12.5% | 11.2% |
| Tax rate | 15.1% - 16.4% | 15.75% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.2% - 10.0% | 9.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.18 | 1.24 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.9% | 12.5% |
| Tax rate | 15.1% | 16.4% |
| Debt/Equity ratio | 0.43 | 0.43 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.2% | 10.0% |
| Selected WACC | 9.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 603008.SS | Xilinmen Furniture Co Ltd | 0.43 | 1.42 | 1.05 |
| 002853.SZ | Guangdong Piano Customized Furniture Co Ltd | 0.05 | 1.12 | 1.08 |
| 2127.HK | Huisen Household International Group Ltd | 12.3 | 1.13 | 0.1 |
| 603180.SS | GoldenHome Living Co Ltd | 0.56 | 1.31 | 0.89 |
| 603313.SS | Healthcare Co Ltd | 0.76 | 1.37 | 0.83 |
| 603326.SS | Nanjing OLO Home Furnishing Co Ltd | 0.16 | 1.4 | 1.24 |
| 603610.SS | Keeson Technology Corp Ltd | 0.17 | 1.6 | 1.4 |
| 603709.SS | Zoy Home Furnishing Co Ltd | 0.35 | 0.6 | 0.47 |
| 603818.SS | QuMei Home Furnishings Group Co Ltd | 0.87 | 1.76 | 1.01 |
| 603898.SS | Guangzhou Holike Creative Home Co Ltd | 0.2 | 1.12 | 0.96 |
| Low | High | |
| Unlevered beta | 0.93 | 1.03 |
| Relevered beta | 1.27 | 1.36 |
| Adjusted relevered beta | 1.18 | 1.24 |
603008.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 603008.SS:
cost_of_equity (11.20%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.18) + 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.