Advances in Economics, Management and Political Sciences

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Proceedings of the 7th International Conference on Economic Management and Green Development

Series Vol. 40 , 10 November 2023


Open Access | Article

Application of WACC in Automobile Enterprises

Wanzhou Tan * 1
1 South China Agricultural University

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 40, 75-82
Published 10 November 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Wanzhou Tan. Application of WACC in Automobile Enterprises. AEMPS (2023) Vol. 40: 75-82. DOI: 10.54254/2754-1169/40/20231997.

Abstract

With the global promotion of energy conservation and emission reduction in recent years, some new energy vehicle enterprises are emerging in the market. To avoid potential risks in the new energy vehicle market with over-investment, the paper selects Tesla, BYD, and Toyota as examples, and uses CAPM and WACC to calculate and analyze the risks of three automobile enterprises based on the financial data in 2022. The result shows that Tesla owned the largest WACC and risks due to the calculation, and Toyota had the smallest WACC and risks. According to the analysis of data combined with the market situation of three companies, the author finds unique risks for each enterprise and provides a feasible direction for the development of three enterprises. It shows that the development of electric vehicles, guarantee of production, good product quality, and reasonable allocation of funds can help automobile enterprises avoid risks in the future.

Keywords

WACC, CAPM, NEV enterprises, automobile enterprises, risk analysis

References

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Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 7th International Conference on Economic Management and Green Development
ISBN (Print)
978-1-83558-101-8
ISBN (Online)
978-1-83558-102-5
Published Date
10 November 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/40/20231997
Copyright
© 2023 The Author(s)
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated