300059.SZ
East Money Information Co Ltd
Price:  
22.75 
CNY
Volume:  
249,661,730
China | Capital Markets

300059.SZ WACC - Weighted Average Cost of Capital

The WACC of East Money Information Co Ltd (300059.SZ) is 7.1%.

The Cost of Equity of East Money Information Co Ltd (300059.SZ) is 7.95%.
The Cost of Debt of East Money Information Co Ltd (300059.SZ) is 5%.

RangeSelected
Cost of equity7.0% - 8.9%7.95%
Tax rate13.0% - 13.2%13.1%
Cost of debt5.0% - 5.0%5%
WACC6.4% - 7.9%7.1%
WACC

300059.SZ WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta0.70.73
Additional risk adjustments0.0%0.5%
Cost of equity7.0%8.9%
Tax rate13.0%13.2%
Debt/Equity ratio
0.280.28
Cost of debt5.0%5.0%
After-tax WACC6.4%7.9%
Selected WACC7.1%

300059.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 300059.SZ:

cost_of_equity (7.95%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.7) + 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.