605009.SS WACC - Weighted Average Cost of Capital
The WACC of Hangzhou Haoyue Personal Care Co Ltd (605009.SS) is 10.0%.
| Range | Selected | |
| Cost of equity | 9.0% - 12.1% | 10.55% |
| Tax rate | 13.3% - 13.9% | 13.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.6% - 11.4% | 10.0% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.03 | 1.18 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.0% | 12.1% |
| Tax rate | 13.3% | 13.9% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.6% | 11.4% |
| Selected WACC | 10.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 605009.SS | Hangzhou Haoyue Personal Care Co Ltd | 0.09 | 1.03 | 0.96 |
| 002919.SZ | MINGCHEN HEALTH Co Ltd | 0.01 | 1.19 | 1.19 |
| 003006.SZ | Chongqing Baiya Sanitory Products Co Ltd | 0 | 0.56 | 0.56 |
| 300740.SZ | Yujiahui Co Ltd | 0.28 | 2.02 | 1.63 |
| 300791.SZ | Sirio Pharma Co Ltd | 0.23 | 1.17 | 0.98 |
| 600249.SS | Liuzhou Liangmianzhen Co Ltd | 0.03 | 0.97 | 0.94 |
| 600439.SS | Henan Rebecca Hair Products Co Ltd | 0.52 | 0.71 | 0.49 |
| 603868.SS | Shanghai Flyco Electrical Appliance Co Ltd | 0 | 1.17 | 1.17 |
| 603896.SS | Zhejiang Shouxiangu Pharmaceutical Co Ltd | 0.13 | 1.53 | 1.38 |
| 603983.SS | Guangdong Marubi Biotechnology Co Ltd | 0.04 | 1.34 | 1.29 |
| Low | High | |
| Unlevered beta | 0.97 | 1.18 |
| Relevered beta | 1.04 | 1.27 |
| Adjusted relevered beta | 1.03 | 1.18 |
605009.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 605009.SS:
cost_of_equity (10.55%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.03) + 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.