KNDI
Kandi Technologies Group Inc
Price:  
1.15 
USD
Volume:  
55,403.00
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KNDI WACC - Weighted Average Cost of Capital

The WACC of Kandi Technologies Group Inc (KNDI) is 5.9%.

The Cost of Equity of Kandi Technologies Group Inc (KNDI) is 6.55%.
The Cost of Debt of Kandi Technologies Group Inc (KNDI) is 5.50%.

Range Selected
Cost of equity 5.60% - 7.50% 6.55%
Tax rate 16.50% - 26.10% 21.30%
Cost of debt 4.00% - 7.00% 5.50%
WACC 4.9% - 6.8% 5.9%
WACC

KNDI WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.37 0.46
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.60% 7.50%
Tax rate 16.50% 26.10%
Debt/Equity ratio 0.41 0.41
Cost of debt 4.00% 7.00%
After-tax WACC 4.9% 6.8%
Selected WACC 5.9%

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 (6.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.37) + 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.