STHZ.CN WACC - Weighted Average Cost of Capital

The WACC of StateHouse Holdings Inc (STHZ.CN) is 8.6%.

The Cost of Equity of StateHouse Holdings Inc (STHZ.CN) is 88.65%.

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

	Range	Selected
Cost of equity	67.70% - 109.60%	88.65%
Tax rate	7.80% - 19.10%	13.45%
Cost of debt	6.00% - 6.80%	6.40%
WACC	7.8% - 9.4%	8.6%

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	12.66	17.28

Additional risk adjustments	0.0%	0.5%
Cost of equity	67.70%	109.60%

Tax rate	7.80%	19.10%
Debt/Equity ratio	25.81	25.81
Cost of debt	6.00%	6.80%

After-tax WACC	7.8%	9.4%


Selected WACC	8.6%

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 (88.65%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (12.66) + 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.