000917.SZ WACC - Weighted Average Cost of Capital
The WACC of Hunan TV & Broadcast Intermediary Co Ltd (000917.SZ) is 8.8%.
| Range | Selected | |
| Cost of equity | 8.8% - 12.5% | 10.65% |
| Tax rate | 21.7% - 26.9% | 24.3% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.5% - 10.1% | 8.8% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1 | 1.24 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.8% | 12.5% |
| Tax rate | 21.7% | 26.9% |
| Debt/Equity ratio | 0.38 | 0.38 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.5% | 10.1% |
| Selected WACC | 8.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 000917.SZ | Hunan TV & Broadcast Intermediary Co Ltd | 0.38 | 1.12 | 0.87 |
| 002115.SZ | Sunwave Communications Co Ltd | 0.11 | 1.47 | 1.35 |
| 002127.SZ | NanJi E-Commerce Co Ltd | 0 | 1.04 | 1.04 |
| 002995.SZ | Beijing Quanshi World Online Network Information Co Ltd | 0 | 1.06 | 1.06 |
| 2131.HK | Netjoy Holdings Ltd | 1.26 | 1.19 | 0.6 |
| 600551.SS | Time Publishing and Media Co Ltd | 0.13 | 0.66 | 0.6 |
| 600757.SS | Changjiang Publishing & Media Co Ltd | 0.02 | 0.41 | 0.4 |
| 600986.SS | Zhewen Interactive Group Co Ltd | 0.12 | 1.46 | 1.33 |
| 601900.SS | Southern Publishing and Media Co Ltd | 0.15 | 0.7 | 0.63 |
| 6988.HK | Joy Spreader Interactive Technology Ltd | 0.1 | 1.77 | 1.64 |
| Low | High | |
| Unlevered beta | 0.77 | 1.05 |
| Relevered beta | 1 | 1.36 |
| Adjusted relevered beta | 1 | 1.24 |
000917.SZ'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 000917.SZ:
cost_of_equity (10.65%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1) + 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.