688033.SS
Beijing Tianyishangjia New Material Corp Ltd
Price:  
6.27 
CNY
Volume:  
11,288,257
China | Machinery

688033.SS WACC - Weighted Average Cost of Capital

The WACC of Beijing Tianyishangjia New Material Corp Ltd (688033.SS) is 9.6%.

The Cost of Equity of Beijing Tianyishangjia New Material Corp Ltd (688033.SS) is 11.75%.
The Cost of Debt of Beijing Tianyishangjia New Material Corp Ltd (688033.SS) is 5%.

RangeSelected
Cost of equity9.6% - 13.9%11.75%
Tax rate14.4% - 18.3%16.35%
Cost of debt5.0% - 5.0%5%
WACC8.1% - 11.1%9.6%
WACC

688033.SS WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta1.131.44
Additional risk adjustments0.0%0.5%
Cost of equity9.6%13.9%
Tax rate14.4%18.3%
Debt/Equity ratio
0.40.4
Cost of debt5.0%5.0%
After-tax WACC8.1%11.1%
Selected WACC9.6%

688033.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 688033.SS:

cost_of_equity (11.75%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.13) + 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.