RAAS
Cloopen Group Holding Ltd
Price:  
1.13 
USD
Volume:  
46,954
China | Software

RAAS WACC - Weighted Average Cost of Capital

The WACC of Cloopen Group Holding Ltd (RAAS) is 8.5%.

The Cost of Equity of Cloopen Group Holding Ltd (RAAS) is 8.65%.
The Cost of Debt of Cloopen Group Holding Ltd (RAAS) is 6.15%.

RangeSelected
Cost of equity6.8% - 10.5%8.65%
Tax rate0.4% - 0.6%0.5%
Cost of debt5.3% - 7.0%6.15%
WACC6.7% - 10.3%8.5%
WACC

RAAS WACC calculation

CategoryLowHigh
Long-term bond rate4.2%4.7%
Equity market risk premium5.0%6.0%
Adjusted beta0.530.89
Additional risk adjustments0.0%0.5%
Cost of equity6.8%10.5%
Tax rate0.4%0.6%
Debt/Equity ratio
0.050.05
Cost of debt5.3%7.0%
After-tax WACC6.7%10.3%
Selected WACC8.5%

RAAS'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 RAAS:

cost_of_equity (8.65%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (0.53) + 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.