603117.SS
Jiangsu Wanlin Modern Logistics Co Ltd
Price:  
6.19 
CNY
Volume:  
4,956,780
China | Air Freight & Logistics

603117.SS WACC - Weighted Average Cost of Capital

The WACC of Jiangsu Wanlin Modern Logistics Co Ltd (603117.SS) is 7.3%.

The Cost of Equity of Jiangsu Wanlin Modern Logistics Co Ltd (603117.SS) is 7.45%.
The Cost of Debt of Jiangsu Wanlin Modern Logistics Co Ltd (603117.SS) is 5%.

RangeSelected
Cost of equity5.8% - 9.1%7.45%
Tax rate10.6% - 14.9%12.75%
Cost of debt5.0% - 5.0%5%
WACC5.8% - 8.9%7.3%
WACC

603117.SS WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta0.520.76
Additional risk adjustments0.0%0.5%
Cost of equity5.8%9.1%
Tax rate10.6%14.9%
Debt/Equity ratio
0.040.04
Cost of debt5.0%5.0%
After-tax WACC5.8%8.9%
Selected WACC7.3%

603117.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 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.