603729.SS
Shanghai LongYun Media Group Co Ltd
Price:  
17.03 
CNY
Volume:  
2,754,500
China | Media

603729.SS WACC - Weighted Average Cost of Capital

The WACC of Shanghai LongYun Media Group Co Ltd (603729.SS) is 6.5%.

The Cost of Equity of Shanghai LongYun Media Group Co Ltd (603729.SS) is 6.6%.
The Cost of Debt of Shanghai LongYun Media Group Co Ltd (603729.SS) is 5%.

RangeSelected
Cost of equity5.2% - 8.0%6.6%
Tax rate3.9% - 5.1%4.5%
Cost of debt5.0% - 5.0%5%
WACC5.2% - 7.7%6.5%
WACC

603729.SS WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta0.410.61
Additional risk adjustments0.0%0.5%
Cost of equity5.2%8.0%
Tax rate3.9%5.1%
Debt/Equity ratio
0.10.1
Cost of debt5.0%5.0%
After-tax WACC5.2%7.7%
Selected WACC6.5%

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.