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 4.1%.

The Cost of Equity of China Health Industries Holdings Inc (CHHE) is 20,944.55%.
The Cost of Debt of China Health Industries Holdings Inc (CHHE) is 5.00%.

Range Selected
Cost of equity 11,225.70% - 30,663.40% 20,944.55%
Tax rate 17.90% - 29.30% 23.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.2% - 3.9% 4.1%
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 2439.53 5474.74
Additional risk adjustments 0.0% 0.5%
Cost of equity 11,225.70% 30,663.40%
Tax rate 17.90% 29.30%
Debt/Equity ratio 78639.3 78639.3
Cost of debt 5.00% 5.00%
After-tax WACC 4.2% 3.9%
Selected WACC 4.1%

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 (20,944.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (2439.53) + 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.