300860.SZ WACC - Weighted Average Cost of Capital
The WACC of Beijing FengShangShiJi Culture Media Co Ltd (300860.SZ) is 12.2%.
| Range | Selected | |
| Cost of equity | 11.0% - 13.6% | 12.3% |
| Tax rate | 23.1% - 25.2% | 24.15% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 10.9% - 13.5% | 12.2% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.36 | 1.39 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.0% | 13.6% |
| Tax rate | 23.1% | 25.2% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 10.9% | 13.5% |
| Selected WACC | 12.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300860.SZ | Beijing FengShangShiJi Culture Media Co Ltd | 0.01 | 1.55 | 1.54 |
| 300027.SZ | Huayi Brothers Media Corp | 0.2 | 2.07 | 1.8 |
| 300133.SZ | Zhejiang Huace Film & TV Co Ltd | 0.05 | 1.88 | 1.8 |
| 300413.SZ | Mango Excellent Media Co Ltd | 0.04 | 1.73 | 1.67 |
| 600977.SS | China Film Co Ltd | 0.09 | 1.09 | 1.02 |
| 601595.SS | Shanghai Film Co Ltd | 0.03 | 1.62 | 1.58 |
| 603103.SS | Hengdian Entertainment Co Ltd | 0.16 | 1.71 | 1.52 |
| IQ | iQIYI Inc | 1.08 | 1.09 | 0.6 |
| TME | Tencent Music Entertainment Group | 0.03 | 0.65 | 0.64 |
| Low | High | |
| Unlevered beta | 1.53 | 1.57 |
| Relevered beta | 1.54 | 1.58 |
| Adjusted relevered beta | 1.36 | 1.39 |
300860.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 300860.SZ:
cost_of_equity (12.30%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.36) + 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.