300419.SZ WACC - Weighted Average Cost of Capital
The WACC of Beijing InterAct Technology Co Ltd (300419.SZ) is 9.7%.
| Range | Selected | |
| Cost of equity | 7.5% - 12.5% | 10% |
| Tax rate | 9.9% - 12.5% | 11.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.4% - 12.0% | 9.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.79 | 1.23 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 12.5% |
| Tax rate | 9.9% | 12.5% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.4% | 12.0% |
| Selected WACC | 9.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300419.SZ | Beijing InterAct Technology Co Ltd | 0.05 | 1.93 | 1.84 |
| 002184.SZ | Shanghai Hi-Tech Control System Co Ltd | 0.23 | 0.32 | 0.26 |
| 002771.SZ | Beijing Transtrue Technology Inc | 0.04 | 1.44 | 1.39 |
| 300300.SZ | Strait Innovation Internet Co Ltd | 0.13 | 1.41 | 1.26 |
| 300330.SZ | Shanghai Huahong Jitong Smart System Co Ltd | 0.04 | 0.22 | 0.22 |
| 300469.SZ | Trust Alliance Information Development Inc Ltd Shanghai | 0.03 | 1.36 | 1.33 |
| 600242.SS | Zhongchang Big Data Corp Ltd | 3.1 | 1.32 | 0.35 |
| 600289.SS | Bright Oceans Inter-Telecom Corp | 0.02 | 0.88 | 0.87 |
| 605398.SS | Shanghai New Centurion Network Information Technology Co Ltd | 0 | 1.4 | 1.4 |
| 8045.HK | Jiangsu Nandasoft Technology Company Limited | 2.93 | 1.09 | 0.3 |
| Low | High | |
| Unlevered beta | 0.66 | 1.28 |
| Relevered beta | 0.69 | 1.34 |
| Adjusted relevered beta | 0.79 | 1.23 |
300419.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 300419.SZ:
cost_of_equity (10.00%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.79) + 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.