Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
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
* Author to whom correspondence should be addressed.
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
- 10 November 2023
- 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