900948.SS
Inner Mongolia Yitai Coal Co Ltd
Price:  
2.04 
USD
Volume:  
8,371,443.00
China | Oil, Gas & Consumable Fuels
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

900948.SS WACC - Weighted Average Cost of Capital

The WACC of Inner Mongolia Yitai Coal Co Ltd (900948.SS) is 8.0%.

The Cost of Equity of Inner Mongolia Yitai Coal Co Ltd (900948.SS) is 9.70%.
The Cost of Debt of Inner Mongolia Yitai Coal Co Ltd (900948.SS) is 5.00%.

Range Selected
Cost of equity 8.40% - 11.00% 9.70%
Tax rate 22.20% - 23.40% 22.80%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.1% - 9.0% 8.0%
WACC

900948.SS WACC calculation

Category Low High
Long-term bond rate 2.2% 2.7%
Equity market risk premium 5.6% 6.6%
Adjusted beta 1.1 1.18
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.40% 11.00%
Tax rate 22.20% 23.40%
Debt/Equity ratio 0.39 0.39
Cost of debt 5.00% 5.00%
After-tax WACC 7.1% 9.0%
Selected WACC 8.0%

900948.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 900948.SS:

cost_of_equity (9.70%) = risk_free_rate (2.45%) + equity_risk_premium (6.10%) * adjusted_beta (1.1) + 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.