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Star Fashion Culture Holdings Limited Class A Ordinary Shares (STFS) — WACC Analysis

WACC Breakdown

Star Fashion Culture Holdings Limited Class A Ordinary Shares (STFS) has a weighted average cost of capital (WACC) of 7.4%. The cost of equity is 7.7%, derived from a beta of 0.57 and a risk-free rate of 4.7%. The after-tax cost of debt is 4.8%. The capital structure is 89.4% equity and 10.6% debt.

Interpretation

A WACC of 7.4% suggests that the market views Star Fashion Culture Holdings Limited Class A Ordinary Shares as relatively low-risk, with a lower cost of financing.

Investors can compare STFS's WACC of 7.4% against industry peers to gauge its relative financing costs. A beta of 0.57 reflects the stock's volatility relative to the broader market.

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VALUATION

STFS WACC: 7.38% for Star Fashion Culture Holdings Limited Class A Ordinary Shares

Current inputs imply a 7.69% cost of equity and a 4.80% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Star Fashion Culture Holdings Limited Class A Ordinary Shares Common Stock (STFS) WACC Results
Weighted Average Cost of Capital
7.38%
Cost of Equity
7.69%
Risk-Free Rate4.67%
Beta0.57
Market Risk Premium4.23%
Cost of Debt
4.80%
Pre-Tax Cost of Debt4.80%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 89.41%($5.04M)
Debt: 10.59%($0.60M)
Equity Component
6.87%
89.41% × 7.69%
Debt Component
0.51%
10.59% × 4.80%

Star Fashion Culture Holdings Limited Class A Ordinary Shares (STFS) WACC in context

Star Fashion Culture Holdings Limited Class A Ordinary Shares (STFS) currently screens with an estimated WACC of 7.38%. That blends a 7.69% cost of equity, a 4.80% pre-tax cost of debt, and a 89.41% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What STFS WACC implies

A 7.38% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates STFS

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.57 and equity accounts for 89.41% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.

STFS WACC: 7.38% — Star Fashion Culture Holdings Limited Class A Ordinary Shares Cost of Capital (August 2026) | DeepViews