603214.SS
Shanghai Aiyingshi Co Ltd
Price:  
21.17 
CNY
Volume:  
5,155,200.00
China | Specialty Retail
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603214.SS WACC - Weighted Average Cost of Capital

The WACC of Shanghai Aiyingshi Co Ltd (603214.SS) is 8.6%.

The Cost of Equity of Shanghai Aiyingshi Co Ltd (603214.SS) is 9.45%.
The Cost of Debt of Shanghai Aiyingshi Co Ltd (603214.SS) is 5.00%.

Range Selected
Cost of equity 7.50% - 11.40% 9.45%
Tax rate 22.50% - 24.20% 23.35%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.9% - 10.3% 8.6%
WACC

603214.SS WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.78 1.08
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.50% 11.40%
Tax rate 22.50% 24.20%
Debt/Equity ratio 0.17 0.17
Cost of debt 5.00% 5.00%
After-tax WACC 6.9% 10.3%
Selected WACC 8.6%

603214.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 603214.SS:

cost_of_equity (9.45%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.78) + 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.