300027.SZ
Huayi Brothers Media Corp
Price:  
2.76 
CNY
Volume:  
121,289,544.00
China | Entertainment
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300027.SZ WACC - Weighted Average Cost of Capital

The WACC of Huayi Brothers Media Corp (300027.SZ) is 9.0%.

The Cost of Equity of Huayi Brothers Media Corp (300027.SZ) is 9.95%.
The Cost of Debt of Huayi Brothers Media Corp (300027.SZ) is 5.00%.

Range Selected
Cost of equity 7.60% - 12.30% 9.95%
Tax rate 3.10% - 5.40% 4.25%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.1% - 11.0% 9.0%
WACC

300027.SZ WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.8 1.21
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.60% 12.30%
Tax rate 3.10% 5.40%
Debt/Equity ratio 0.21 0.21
Cost of debt 5.00% 5.00%
After-tax WACC 7.1% 11.0%
Selected WACC 9.0%

300027.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 300027.SZ:

cost_of_equity (9.95%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.8) + 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.