KNDI WACC - Weighted Average Cost of Capital
The WACC of Kandi Technologies Group Inc (KNDI) is 5.9%.
| Range | Selected | |
| Cost of equity | 5.5% - 7.5% | 6.5% |
| Tax rate | 16.7% - 26.1% | 21.4% |
| Cost of debt | 4.3% - 7.0% | 5.65% |
| WACC | 5.0% - 6.9% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.36 | 0.47 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 7.5% |
| Tax rate | 16.7% | 26.1% |
| Debt/Equity ratio | 0.39 | 0.39 |
| Cost of debt | 4.3% | 7.0% |
| After-tax WACC | 5.0% | 6.9% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KNDI | Kandi Technologies Group Inc | 0.79 | 0.4 | 0.25 |
| CAAS | China Automotive Systems Inc | 1.36 | 0.79 | 0.38 |
| ESWW | Environmental Solutions Worldwide Inc | 42548.29 | -0.56 | 0 |
| FSCR | Federal Screw Works | 1.22 | 0.06 | 0.03 |
| OMTK | Omnitek Engineering Corp | 0.59 | 0.1 | 0.07 |
| SSA.V | Spectra Products Inc | 0.08 | 0.67 | 0.63 |
| SYPR | Sypris Solutions Inc | 0.34 | 0.03 | 0.02 |
| WARM | Cool Technologies Inc | 4232.52 | 0.05 | 0 |
| 600660.SS | Fuyao Glass Industry Group Co Ltd | 0.12 | 0.43 | 0.39 |
| Low | High | |
| Unlevered beta | 0.04 | 0.21 |
| Relevered beta | 0.04 | 0.21 |
| Adjusted relevered beta | 0.36 | 0.47 |
KNDI'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 KNDI:
cost_of_equity (6.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.36) + 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.