603729.SS WACC - Weighted Average Cost of Capital
The WACC of Shanghai LongYun Media Group Co Ltd (603729.SS) is 6.5%.
| Range | Selected | |
| Cost of equity | 5.2% - 8.0% | 6.6% |
| Tax rate | 3.9% - 5.1% | 4.5% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.2% - 7.7% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.41 | 0.61 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 8.0% |
| Tax rate | 3.9% | 5.1% |
| Debt/Equity ratio | 0.1 | 0.1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.2% | 7.7% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 603729.SS | Shanghai LongYun Media Group Co Ltd | 0.1 | 1.47 | 1.35 |
| 002751.SZ | Shenzhen ESUN Display Co Ltd | 9.79 | 0.76 | 0.07 |
| 1000.HK | Beijing Media Corp Ltd | 0.02 | 0.41 | 0.4 |
| 1640.HK | Ruicheng China Media Group Ltd | 0.04 | 0.14 | 0.14 |
| 1661.HK | Wisdom Sports Group | 0.07 | 0.06 | 0.06 |
| 300392.SZ | Beijing Tensyn Digital Marketing Technology Joint Stock Co | 12.66 | -0.11 | -0.01 |
| 300781.SZ | Guangdong Insight Brand Marketing Group Co Ltd | 0.01 | 1.79 | 1.78 |
| 623.HK | Sinomedia Holding Ltd | 0 | 0.37 | 0.37 |
| 8500.HK | Icon Culture Global Co Ltd | 0.03 | -0.16 | -0.16 |
| 9919.HK | Activation Group Holdings Ltd | 0.01 | 0.44 | 0.43 |
| Low | High | |
| Unlevered beta | 0.11 | 0.39 |
| Relevered beta | 0.12 | 0.42 |
| Adjusted relevered beta | 0.41 | 0.61 |
603729.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 603729.SS:
cost_of_equity (6.60%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.41) + 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.