2008.HK WACC - Weighted Average Cost of Capital
The WACC of Phoenix Media Investment (Holdings) Ltd (2008.HK) is 6.0%.
| Range | Selected | |
| Cost of equity | 6.2% - 9.2% | 7.7% |
| Tax rate | 6.8% - 7.2% | 7% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.6% - 7.5% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.56 | 0.77 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 9.2% |
| Tax rate | 6.8% | 7.2% |
| Debt/Equity ratio | 1.78 | 1.78 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.6% | 7.5% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2008.HK | Phoenix Media Investment (Holdings) Ltd | 1.78 | 0.65 | 0.24 |
| 000665.SZ | Hubei Radio & Television Information Network Co Ltd | 0.67 | 1.53 | 0.94 |
| 039340.KQ | Korea Business News Co Ltd | 0.11 | -0.12 | -0.1 |
| 1097.HK | i-CABLE Communications Ltd | 12.27 | 0.48 | 0.04 |
| 471.HK | CMMB Vision Holdings Ltd | 1.6 | 1.01 | 0.41 |
| 511.HK | Television Broadcasts Ltd | 1.56 | 0.46 | 0.19 |
| MDIA.JK | Intermedia Capital Tbk PT | 1.79 | -0.19 | -0.07 |
| MEDIA.KL | Media Prima Bhd | 0.74 | 0.58 | 0.34 |
| SXL.AX | Southern Cross Media Group Ltd | 1.38 | 0.57 | 0.25 |
| VIVA.JK | Visi Media Asia Tbk PT | 18.8 | 0.12 | 0.01 |
| Low | High | |
| Unlevered beta | 0.13 | 0.25 |
| Relevered beta | 0.34 | 0.66 |
| Adjusted relevered beta | 0.56 | 0.77 |
2008.HK'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 2008.HK:
cost_of_equity (7.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.56) + 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.