601928.SS WACC - Weighted Average Cost of Capital
The WACC of Jiangsu Phoenix Publishing & Media Corp Ltd (601928.SS) is 7.8%.
| Range | Selected | |
| Cost of equity | 6.8% - 8.9% | 7.85% |
| Tax rate | 1.0% - 11.5% | 6.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.7% - 8.9% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.67 | 0.74 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 8.9% |
| Tax rate | 1.0% | 11.5% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.7% | 8.9% |
| Selected WACC | 7.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 601928.SS | Jiangsu Phoenix Publishing & Media Corp Ltd | 0.01 | 0.3 | 0.29 |
| 000719.SZ | Central China Land Media Co Ltd | 0.06 | 0.7 | 0.66 |
| 600373.SS | Chinese Universe Publishing and Media Group Co Ltd | 0.27 | 0.72 | 0.57 |
| 600551.SS | Time Publishing and Media Co Ltd | 0.13 | 0.67 | 0.59 |
| 600757.SS | Changjiang Publishing & Media Co Ltd | 0.02 | 0.41 | 0.4 |
| 601019.SS | Shandong Publishing & Media Co Ltd | 0.01 | 0.37 | 0.37 |
| 601098.SS | China South Publishing & Media Group Co Ltd | 0.09 | 0.26 | 0.23 |
| 601900.SS | Southern Publishing and Media Co Ltd | 0.15 | 0.69 | 0.6 |
| 601949.SS | China Publishing & Media Holdings Co Ltd | 0.08 | 1.01 | 0.93 |
| 603000.SS | People.cn Co Ltd | 0.01 | 1.46 | 1.44 |
| Low | High | |
| Unlevered beta | 0.5 | 0.6 |
| Relevered beta | 0.51 | 0.61 |
| Adjusted relevered beta | 0.67 | 0.74 |
601928.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 601928.SS:
cost_of_equity (7.85%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.67) + 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.