603598.SS WACC - Weighted Average Cost of Capital
The WACC of Inly Media Co Ltd (603598.SS) is 10.7%.
| Range | Selected | |
| Cost of equity | 9.5% - 13.0% | 11.25% |
| Tax rate | 17.7% - 25.6% | 21.65% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.1% - 12.3% | 10.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.11 | 1.31 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.5% | 13.0% |
| Tax rate | 17.7% | 25.6% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.1% | 12.3% |
| Selected WACC | 10.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 603598.SS | Inly Media Co Ltd | 0.09 | 1.43 | 1.34 |
| 000038.SZ | Shenzhen Capstone Industrial Co Ltd | 0.47 | 1.91 | 1.41 |
| 000607.SZ | Zhejiang Huamei Holding Co Ltd | 0.24 | 1.4 | 1.19 |
| 002712.SZ | Simei Media Co Ltd | 0.26 | 1.14 | 0.96 |
| 002751.SZ | Shenzhen ESUN Display Co Ltd | 9.79 | 0.76 | 0.09 |
| 300343.SZ | Lecron Industrial Development Group Co Ltd | 0.06 | 1.67 | 1.6 |
| 300392.SZ | Beijing Tensyn Digital Marketing Technology Joint Stock Co | 12.66 | -0.11 | -0.01 |
| 300805.SZ | Guangdong Brandmax Marketing Co Ltd | 0.03 | 1.46 | 1.42 |
| 603466.SS | Shanghai Fengyuzhu Culture Technology Co Ltd | 0.1 | 1.72 | 1.6 |
| 623.HK | Sinomedia Holding Ltd | 0 | 0.33 | 0.33 |
| Low | High | |
| Unlevered beta | 1.09 | 1.37 |
| Relevered beta | 1.16 | 1.46 |
| Adjusted relevered beta | 1.11 | 1.31 |
603598.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 603598.SS:
cost_of_equity (11.25%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.11) + 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.