603099.SS
Changbai Mountain Tourism Co Ltd
Price:  
37.82 
CNY
Volume:  
4,464,100.00
China | Hotels, Restaurants & Leisure
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603099.SS WACC - Weighted Average Cost of Capital

The WACC of Changbai Mountain Tourism Co Ltd (603099.SS) is 8.8%.

The Cost of Equity of Changbai Mountain Tourism Co Ltd (603099.SS) is 8.80%.
The Cost of Debt of Changbai Mountain Tourism Co Ltd (603099.SS) is 5.00%.

Range Selected
Cost of equity 7.10% - 10.50% 8.80%
Tax rate 21.60% - 23.30% 22.45%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.1% - 10.4% 8.8%
WACC

603099.SS WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.73 0.96
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.10% 10.50%
Tax rate 21.60% 23.30%
Debt/Equity ratio 0.01 0.01
Cost of debt 5.00% 5.00%
After-tax WACC 7.1% 10.4%
Selected WACC 8.8%

603099.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 603099.SS:

cost_of_equity (8.80%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.73) + 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.