002343.SZ WACC - Weighted Average Cost of Capital
The WACC of Ciwen Media Co Ltd (002343.SZ) is 8.1%.
| Range | Selected | |
| Cost of equity | 6.2% - 10.5% | 8.35% |
| Tax rate | 15.9% - 20.2% | 18.05% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.1% - 10.1% | 8.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.58 | 0.96 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 10.5% |
| Tax rate | 15.9% | 20.2% |
| Debt/Equity ratio | 0.07 | 0.07 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.1% | 10.1% |
| Selected WACC | 8.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002343.SZ | Ciwen Media Co Ltd | 0.07 | 1.65 | 1.55 |
| 000802.SZ | Beijing Jingxi Culture & Tourism Co Ltd | 0.14 | 0.98 | 0.87 |
| 000892.SZ | H&R Century Union Corp | 0.02 | 1.32 | 1.29 |
| 002502.SZ | Dinglong Culture Co Ltd | 0.11 | 1 | 0.91 |
| 1616.HK | Starrise Media Holdings Ltd | 1.53 | 0.05 | 0.02 |
| 1859.HK | China Bright Culture Group | 0.51 | 0.3 | 0.21 |
| 300336.SZ | Shanghai New Culture Media Group Co Ltd | 4.54 | -0.01 | 0 |
| 600088.SS | China Television Media Ltd | 0.02 | 1.23 | 1.22 |
| 8368.HK | Creative China Holdings Ltd | 0.07 | 0.1 | 0.09 |
| 9631.T | Tokyu Recreation Co Ltd | 0.09 | 0.48 | 0.45 |
| Low | High | |
| Unlevered beta | 0.35 | 0.89 |
| Relevered beta | 0.37 | 0.94 |
| Adjusted relevered beta | 0.58 | 0.96 |
002343.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 002343.SZ:
cost_of_equity (8.35%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.58) + 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.