TOUR
Tuniu Corp
Price:  
0.91 
USD
Volume:  
53,486.00
China | Hotels, Restaurants & Leisure
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TOUR WACC - Weighted Average Cost of Capital

The WACC of Tuniu Corp (TOUR) is 8.8%.

The Cost of Equity of Tuniu Corp (TOUR) is 8.75%.
The Cost of Debt of Tuniu Corp (TOUR) is 10.55%.

Range Selected
Cost of equity 6.90% - 10.60% 8.75%
Tax rate 0.50% - 0.70% 0.60%
Cost of debt 4.50% - 16.60% 10.55%
WACC 6.9% - 10.8% 8.8%
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 0.67 1.03
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.90% 10.60%
Tax rate 0.50% 0.70%
Debt/Equity ratio 0.03 0.03
Cost of debt 4.50% 16.60%
After-tax WACC 6.9% 10.8%
Selected WACC 8.8%

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 (8.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.67) + 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.