TJBH
Tengjun Biotechnology Corp
Price:  
USD
Volume:  
150
China | Information

TJBH WACC - Weighted Average Cost of Capital

The WACC of Tengjun Biotechnology Corp (TJBH) is 6.1%.

The Cost of Equity of Tengjun Biotechnology Corp (TJBH) is 6.35%.
The Cost of Debt of Tengjun Biotechnology Corp (TJBH) is 4.25%.

RangeSelected
Cost of equity5.4% - 7.3%6.35%
Tax rate26.2% - 27.0%26.6%
Cost of debt4.0% - 4.5%4.25%
WACC5.2% - 7.1%6.1%
WACC

TJBH WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.330.44
Additional risk adjustments0.0%0.5%
Cost of equity5.4%7.3%
Tax rate26.2%27.0%
Debt/Equity ratio
0.070.07
Cost of debt4.0%4.5%
After-tax WACC5.2%7.1%
Selected WACC6.1%

TJBH WACC - Detailed calculations of Beta

Debt/EquityUnlevered
PeersCompany NameratioBetabeta
TJBHTengjun Biotechnology Corp0.070.290.28
BXXY Boxxy Inc 0.29 0.97 0.8
SVMB Savmobi Technology Inc 0 0.16 0.16
LowHigh
Unlevered beta0.250.38
Relevered beta00.16
Adjusted relevered beta0.330.44

TJBH'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 TJBH:

cost_of_equity (6.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.33) + 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.