300081.SZ WACC - Weighted Average Cost of Capital

The WACC of Hengxin Shambala Culture Co Ltd (300081.SZ) is 11.6%.

The Cost of Equity of Hengxin Shambala Culture Co Ltd (300081.SZ) is 11.90%.

The Cost of Debt of Hengxin Shambala Culture Co Ltd (300081.SZ) is 5.00%.

	Range	Selected
Cost of equity	10.40% - 13.40%	11.90%
Tax rate	1.00% - 1.60%	1.30%
Cost of debt	5.00% - 5.00%	5.00%
WACC	10.2% - 13.0%	11.6%

WACC

300081.SZ WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.27	1.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	13.40%

Tax rate	1.00%	1.60%
Debt/Equity ratio	0.04	0.04
Cost of debt	5.00%	5.00%

After-tax WACC	10.2%	13.0%


Selected WACC	11.6%

300081.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 300081.SZ:

cost_of_equity (11.90%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.27) + 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.