600959.SS WACC - Weighted Average Cost of Capital
The WACC of Jiangsu Broadcasting Cable Information Network Corp Ltd (600959.SS) is 8.5%.
| Range | Selected | |
| Cost of equity | 7.5% - 11.6% | 9.55% |
| Tax rate | 0.6% - 0.9% | 0.75% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.9% - 10.0% | 8.5% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.79 | 1.11 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 11.6% |
| Tax rate | 0.6% | 0.9% |
| Debt/Equity ratio | 0.31 | 0.31 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.9% | 10.0% |
| Selected WACC | 8.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 600959.SS | Jiangsu Broadcasting Cable Information Network Corp Ltd | 0.31 | 1.14 | 0.87 |
| 000665.SZ | Hubei Radio & Television Information Network Co Ltd | 0.67 | 1.53 | 0.92 |
| 300770.SZ | Guangdong South New Media Co Ltd | 0 | 1.09 | 1.09 |
| 600757.SS | Changjiang Publishing & Media Co Ltd | 0.02 | 0.41 | 0.4 |
| 601019.SS | Shandong Publishing & Media Co Ltd | 0.01 | 0.34 | 0.34 |
| 601098.SS | China South Publishing & Media Group Co Ltd | 0.09 | 0.23 | 0.21 |
| 601900.SS | Southern Publishing and Media Co Ltd | 0.15 | 0.71 | 0.62 |
| 601949.SS | China Publishing & Media Holdings Co Ltd | 0.08 | 1.02 | 0.94 |
| ASTRO.KL | Astro Malaysia Holdings Bhd | 3.74 | 1.77 | 0.38 |
| ZEEL.NS | Zee Entertainment Enterprises Ltd | 0.02 | 1.41 | 1.38 |
| Low | High | |
| Unlevered beta | 0.53 | 0.89 |
| Relevered beta | 0.69 | 1.16 |
| Adjusted relevered beta | 0.79 | 1.11 |
600959.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 600959.SS:
cost_of_equity (9.55%) = 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.