603096.SS WACC - Weighted Average Cost of Capital
The WACC of Thinkingdom Media Group Ltd (603096.SS) is 10.7%.
| Range | Selected | |
| Cost of equity | 9.4% - 12.0% | 10.7% |
| Tax rate | 23.8% - 26.5% | 25.15% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.4% - 12.0% | 10.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.1 | 1.17 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.4% | 12.0% |
| Tax rate | 23.8% | 26.5% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.4% | 12.0% |
| Selected WACC | 10.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 603096.SS | Thinkingdom Media Group Ltd | 0 | 0.93 | 0.92 |
| 300148.SZ | Tangel Culture Co Ltd | 0.03 | 1.54 | 1.51 |
| 300654.SZ | Astro-century Education & Technology Co Ltd | 0 | 1.29 | 1.28 |
| 300788.SZ | Citic Press Corp | 0.04 | 1.26 | 1.22 |
| 600229.SS | Qingdao Citymedia Co Ltd | 0.03 | 1.08 | 1.05 |
| 601858.SS | China Science Publishing & Media Ltd | 0 | 1.5 | 1.49 |
| 601999.SS | Northern United Publishing & Media Group Co Ltd | 0.11 | 1.1 | 1.02 |
| 603888.SS | Xinhuanet Co Ltd | 0 | 1.22 | 1.21 |
| 603999.SS | DuZhe Publishing&Media Co Ltd | 0.01 | 1.33 | 1.32 |
| 8087.HK | China 33 Media Group Ltd | 0.25 | 0.46 | 0.39 |
| Low | High | |
| Unlevered beta | 1.15 | 1.25 |
| Relevered beta | 1.15 | 1.25 |
| Adjusted relevered beta | 1.1 | 1.17 |
603096.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 603096.SS:
cost_of_equity (10.70%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.1) + 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.