The WACC of Jiangsu Wanlin Modern Logistics Co Ltd (603117.SS) is 7.3%.
Range | Selected | |
Cost of equity | 5.8% - 9.1% | 7.45% |
Tax rate | 10.6% - 14.9% | 12.75% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 5.8% - 8.9% | 7.3% |
Category | Low | High |
Long-term bond rate | 2.7% | 3.2% |
Equity market risk premium | 6.1% | 7.1% |
Adjusted beta | 0.52 | 0.76 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.8% | 9.1% |
Tax rate | 10.6% | 14.9% |
Debt/Equity ratio | 0.04 | 0.04 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 5.8% | 8.9% |
Selected WACC | 7.3% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
603117.SS | Jiangsu Wanlin Modern Logistics Co Ltd | 0.04 | 1.3 | 1.26 |
002800.SZ | Xinjiang Tianshun Supply Chain Co Ltd | 0.19 | 0.88 | 0.75 |
1529.HK | Goal Rise Logistics (China) Holdings Ltd | 0.29 | -0.46 | -0.37 |
2130.HK | CN Logistics International Holdings Ltd | 0.45 | 0.18 | 0.13 |
2642.TW | Taiwan Pelican Express Co Ltd | 0.6 | 0.37 | 0.24 |
300013.SZ | Jiangsu Xinning Modern Logistics Co Ltd | 0.04 | 1.02 | 0.98 |
300873.SZ | Hichain Logistics Co Ltd | 0.14 | 1.27 | 1.14 |
3399.HK | Guangdong Yueyun Transportation Co Ltd | 3.04 | 0.48 | 0.13 |
603535.SS | Guangzhou Jiacheng International Logistics Co Ltd | 0.29 | 0.65 | 0.52 |
TMS.VN | Transimex Corp | 0.34 | 0.37 | 0.29 |
Low | High | |
Unlevered beta | 0.27 | 0.61 |
Relevered beta | 0.28 | 0.64 |
Adjusted relevered beta | 0.52 | 0.76 |
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 603117.SS:
cost_of_equity (7.45%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.52) + 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.