CHHE
China Health Industries Holdings Inc
Price:  
0.00 
USD
Volume:  
2,000.00
China | Personal Products
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CHHE WACC - Weighted Average Cost of Capital

The WACC of China Health Industries Holdings Inc (CHHE) is 3.8%.

The Cost of Equity of China Health Industries Holdings Inc (CHHE) is 852.80%.
The Cost of Debt of China Health Industries Holdings Inc (CHHE) is 5.00%.

Range Selected
Cost of equity 5.40% - 1,700.20% 852.80%
Tax rate 17.90% - 29.30% 23.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.1% - 3.6% 3.8%
WACC

CHHE WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.33 302.75
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.40% 1,700.20%
Tax rate 17.90% 29.30%
Debt/Equity ratio 78639.3 78639.3
Cost of debt 5.00% 5.00%
After-tax WACC 4.1% 3.6%
Selected WACC 3.8%

CHHE'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 CHHE:

cost_of_equity (852.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.33) + 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.