603881.SS WACC - Weighted Average Cost of Capital
The WACC of Shanghai AtHub Co Ltd (603881.SS) is 9.5%.
| Range | Selected | |
| Cost of equity | 8.7% - 12.2% | 10.45% |
| Tax rate | 25.4% - 27.5% | 26.45% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.0% - 11.0% | 9.5% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.98 | 1.2 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.7% | 12.2% |
| Tax rate | 25.4% | 27.5% |
| Debt/Equity ratio | 0.17 | 0.17 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.0% | 11.0% |
| Selected WACC | 9.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 603881.SS | Shanghai AtHub Co Ltd | 0.17 | 1.36 | 1.21 |
| 000971.SZ | Gosun Holding Co Ltd | 0.61 | 0.98 | 0.68 |
| 1686.HK | Sunevision Holdings Ltd | 0.84 | 1.12 | 0.69 |
| 300017.SZ | Wangsu Science & Technology Co Ltd | 0.03 | 1.86 | 1.82 |
| 300738.SZ | Guangdong Aofei Data Technology Co Ltd | 0.32 | 1.77 | 1.43 |
| 3633.T | GMO Pepabo Inc | 0.14 | 0.73 | 0.66 |
| 3680.HK | Suoxinda Holdings Ltd | 0.13 | 0.15 | 0.14 |
| 4477.T | Base Inc | 0.02 | 1.14 | 1.12 |
| 603138.SS | Beijing Vastdata Technology Co Ltd | 0 | 0.98 | 0.98 |
| 688030.SS | Hillstone Networks Co Ltd | 0.18 | 1.48 | 1.31 |
| Low | High | |
| Unlevered beta | 0.86 | 1.16 |
| Relevered beta | 0.97 | 1.3 |
| Adjusted relevered beta | 0.98 | 1.2 |
603881.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 603881.SS:
cost_of_equity (10.45%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.98) + 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.