603129.SS
Zhejiang CFMoto Power Co Ltd
Price:  
166.00 
CNY
Volume:  
2,071,067.00
China | Leisure Products
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603129.SS WACC - Weighted Average Cost of Capital

The WACC of Zhejiang CFMoto Power Co Ltd (603129.SS) is 10.6%.

The Cost of Equity of Zhejiang CFMoto Power Co Ltd (603129.SS) is 11.55%.
The Cost of Debt of Zhejiang CFMoto Power Co Ltd (603129.SS) is 5.00%.

Range Selected
Cost of equity 10.00% - 13.10% 11.55%
Tax rate 8.30% - 8.90% 8.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 9.2% - 11.9% 10.6%
WACC

603129.SS WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 1.19 1.33
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.00% 13.10%
Tax rate 8.30% 8.90%
Debt/Equity ratio 0.16 0.16
Cost of debt 5.00% 5.00%
After-tax WACC 9.2% 11.9%
Selected WACC 10.6%

603129.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 603129.SS:

cost_of_equity (11.55%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.19) + 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.