TOUR
Tuniu Corp
Price:  
0.91 
USD
Volume:  
50,808.00
China | Hotels, Restaurants & Leisure
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TOUR WACC - Weighted Average Cost of Capital

The WACC of Tuniu Corp (TOUR) is 6.1%.

The Cost of Equity of Tuniu Corp (TOUR) is 6.05%.
The Cost of Debt of Tuniu Corp (TOUR) is 8.20%.

Range Selected
Cost of equity 5.40% - 6.70% 6.05%
Tax rate 0.10% - 0.30% 0.20%
Cost of debt 7.30% - 9.10% 8.20%
WACC 5.4% - 6.8% 6.1%
WACC

TOUR WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.33 0.33
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.40% 6.70%
Tax rate 0.10% 0.30%
Debt/Equity ratio 0.02 0.02
Cost of debt 7.30% 9.10%
After-tax WACC 5.4% 6.8%
Selected WACC 6.1%

TOUR'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 TOUR:

cost_of_equity (6.05%) = 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.