300071.SZ WACC - Weighted Average Cost of Capital
The WACC of Spearhead Integrated Marketing Communication Group (300071.SZ) is 6.0%.
| Range | Selected | |
| Cost of equity | 5.0% - 7.0% | 6% |
| Tax rate | 5.4% - 10.7% | 8.05% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.0% - 7.0% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.38 | 0.47 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.0% | 7.0% |
| Tax rate | 5.4% | 10.7% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.0% | 7.0% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300071.SZ | Spearhead Integrated Marketing Communication Group | 0.03 | 2.47 | 2.41 |
| 000607.SZ | Zhejiang Huamei Holding Co Ltd | 0.24 | 1.4 | 1.15 |
| 002712.SZ | Simei Media Co Ltd | 0.26 | 1.14 | 0.93 |
| 002751.SZ | Shenzhen ESUN Display Co Ltd | 9.79 | 0.76 | 0.08 |
| 1640.HK | Ruicheng China Media Group Ltd | 0.04 | 0.07 | 0.07 |
| 1661.HK | Wisdom Sports Group | 0.06 | 0.05 | 0.05 |
| 300392.SZ | Beijing Tensyn Digital Marketing Technology Joint Stock Co | 12.66 | -0.11 | -0.01 |
| 603598.SS | Inly Media Co Ltd | 0.09 | 1.43 | 1.33 |
| 623.HK | Sinomedia Holding Ltd | 0 | 0.33 | 0.33 |
| 8500.HK | Icon Culture Global Co Ltd | 0.03 | -0.07 | -0.07 |
| 863.HK | Bc Technology Group Ltd | 0.01 | 0.13 | 0.13 |
| Low | High | |
| Unlevered beta | 0.08 | 0.33 |
| Relevered beta | 0.07 | 0.21 |
| Adjusted relevered beta | 0.38 | 0.47 |
300071.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 300071.SZ:
cost_of_equity (6.00%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.38) + 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.