CUII
China United Insurance Service Inc
Price:  
0.00 
USD
Volume:  
1,480.00
Taiwan, Province of China | Insurance
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CUII WACC - Weighted Average Cost of Capital

The WACC of China United Insurance Service Inc (CUII) is 4.4%.

The Cost of Equity of China United Insurance Service Inc (CUII) is 9,994.30%.
The Cost of Debt of China United Insurance Service Inc (CUII) is 4.25%.

Range Selected
Cost of equity 7,218.50% - 12,770.10% 9,994.30%
Tax rate 28.70% - 30.60% 29.65%
Cost of debt 4.00% - 4.50% 4.25%
WACC 3.9% - 5.0% 4.4%
WACC

CUII WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1568.39 2279.5
Additional risk adjustments 0.0% 0.5%
Cost of equity 7,218.50% 12,770.10%
Tax rate 28.70% 30.60%
Debt/Equity ratio 6936.12 6936.12
Cost of debt 4.00% 4.50%
After-tax WACC 3.9% 5.0%
Selected WACC 4.4%

CUII'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 CUII:

cost_of_equity (9,994.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1568.39) + 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.