343.HK
Culturecom Holdings Ltd
Price:  
0.12 
HKD
Volume:  
4,040,000.00
Hong Kong | Media
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

343.HK WACC - Weighted Average Cost of Capital

The WACC of Culturecom Holdings Ltd (343.HK) is 7.1%.

The Cost of Equity of Culturecom Holdings Ltd (343.HK) is 6.60%.
The Cost of Debt of Culturecom Holdings Ltd (343.HK) is 27.25%.

Range Selected
Cost of equity 5.80% - 7.40% 6.60%
Tax rate 0.80% - 1.00% 0.90%
Cost of debt 7.00% - 47.50% 27.25%
WACC 5.8% - 8.4% 7.1%
WACC

343.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.49 0.51
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.80% 7.40%
Tax rate 0.80% 1.00%
Debt/Equity ratio 0.02 0.02
Cost of debt 7.00% 47.50%
After-tax WACC 5.8% 8.4%
Selected WACC 7.1%

343.HK'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 343.HK:

cost_of_equity (6.60%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.49) + 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.