STHZ.CN WACC - Weighted Average Cost of Capital

The WACC of StateHouse Holdings Inc (STHZ.CN) is 7.4%.

The Cost of Equity of StateHouse Holdings Inc (STHZ.CN) is 57.90%.

The Cost of Debt of StateHouse Holdings Inc (STHZ.CN) is 6.40%.

	Range	Selected
Cost of equity	33.70% - 82.10%	57.90%
Tax rate	7.80% - 19.10%	13.45%
Cost of debt	6.00% - 6.80%	6.40%
WACC	6.5% - 8.3%	7.4%

WACC

STHZ.CN WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	6	12.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	33.70%	82.10%

Tax rate	7.80%	19.10%
Debt/Equity ratio	26.07	26.07
Cost of debt	6.00%	6.80%

After-tax WACC	6.5%	8.3%


Selected WACC	7.4%

STHZ.CN'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 STHZ.CN:

cost_of_equity (57.90%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (6) + 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.