600831.SS
Shaanxi Broadcast & TV Network Intermediary Group Co Ltd
Price:  
2.98 
CNY
Volume:  
4,365,301.00
China | Media
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600831.SS WACC - Weighted Average Cost of Capital

The WACC of Shaanxi Broadcast & TV Network Intermediary Group Co Ltd (600831.SS) is 7.5%.

The Cost of Equity of Shaanxi Broadcast & TV Network Intermediary Group Co Ltd (600831.SS) is 15.35%.
The Cost of Debt of Shaanxi Broadcast & TV Network Intermediary Group Co Ltd (600831.SS) is 5.00%.

Range Selected
Cost of equity 8.90% - 21.80% 15.35%
Tax rate 1.30% - 6.10% 3.70%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.0% - 9.1% 7.5%
WACC

600831.SS WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 1.02 2.55
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.90% 21.80%
Tax rate 1.30% 6.10%
Debt/Equity ratio 2.93 2.93
Cost of debt 5.00% 5.00%
After-tax WACC 6.0% 9.1%
Selected WACC 7.5%

600831.SS'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 600831.SS:

cost_of_equity (15.35%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.02) + 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.