300419.SZ
Beijing InterAct Technology Co Ltd
Price:  
5.72 
CNY
Volume:  
8,432,400
China | IT Services

300419.SZ WACC - Weighted Average Cost of Capital

The WACC of Beijing InterAct Technology Co Ltd (300419.SZ) is 9.7%.

The Cost of Equity of Beijing InterAct Technology Co Ltd (300419.SZ) is 10%.
The Cost of Debt of Beijing InterAct Technology Co Ltd (300419.SZ) is 5%.

RangeSelected
Cost of equity7.5% - 12.5%10%
Tax rate9.9% - 12.5%11.2%
Cost of debt5.0% - 5.0%5%
WACC7.4% - 12.0%9.7%
WACC

300419.SZ WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta0.791.23
Additional risk adjustments0.0%0.5%
Cost of equity7.5%12.5%
Tax rate9.9%12.5%
Debt/Equity ratio
0.050.05
Cost of debt5.0%5.0%
After-tax WACC7.4%12.0%
Selected WACC9.7%

300419.SZ WACC - Detailed calculations of Beta

LowHigh
Unlevered beta0.661.28
Relevered beta0.691.34
Adjusted relevered beta0.791.23

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.