471.HK WACC - Weighted Average Cost of Capital
The WACC of CMMB Vision Holdings Ltd (471.HK) is 5.6%.
| Range | Selected | |
| Cost of equity | 5.2% - 8.7% | 6.95% |
| Tax rate | 0.0% - 0.3% | 0.15% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.6% - 6.6% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.38 | 0.69 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 8.7% |
| Tax rate | 0.0% | 0.3% |
| Debt/Equity ratio | 0.97 | 0.97 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.6% | 6.6% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 471.HK | CMMB Vision Holdings Ltd | 0.97 | 0.98 | 0.5 |
| 052220.KQ | iMBC Co Ltd | 0.02 | 0.44 | 0.44 |
| 2008.HK | Phoenix Media Investment (Holdings) Ltd | 0.91 | 0.69 | 0.36 |
| 511.HK | Television Broadcasts Ltd | 1.06 | 0.45 | 0.22 |
| MARI.JK | Mahaka Radio Integra Tbk PT | 3.01 | 0.26 | 0.07 |
| MDIA.JK | Intermedia Capital Tbk PT | 1.79 | 0.01 | 0 |
| NDTV.NS | New Delhi Television Ltd | 0.35 | 1.14 | 0.84 |
| RAJTV.NS | Raj Television Network Ltd | 0.1 | -0.15 | -0.14 |
| RBCM.ME | RBK PAO | 1.86 | -0.02 | -0.01 |
| SEG.AX | Sports Entertainment Group Ltd | 0.52 | -0.38 | -0.25 |
| Low | High | |
| Unlevered beta | 0.04 | 0.28 |
| Relevered beta | 0.07 | 0.54 |
| Adjusted relevered beta | 0.38 | 0.69 |
471.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 471.HK:
cost_of_equity (6.95%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.38) + 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.