QYBX
Qian Yuan Baixing Inc
Price:  
0.01 
USD
Volume:  
71,370.00
United States | N/A
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QYBX WACC - Weighted Average Cost of Capital

The WACC of Qian Yuan Baixing Inc (QYBX) is 31.9%.

The Cost of Equity of Qian Yuan Baixing Inc (QYBX) is 8.05%.
The Cost of Debt of Qian Yuan Baixing Inc (QYBX) is 54.60%.

Range Selected
Cost of equity 6.10% - 10.00% 8.05%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 7.00% - 102.20% 54.60%
WACC 5.4% - 58.4% 31.9%
WACC

QYBX WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.48 0.92
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.10% 10.00%
Tax rate 26.20% 27.00%
Debt/Equity ratio 2.98 2.98
Cost of debt 7.00% 102.20%
After-tax WACC 5.4% 58.4%
Selected WACC 31.9%

QYBX'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 QYBX:

cost_of_equity (8.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.48) + 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.