9928.TW WACC - Weighted Average Cost of Capital
The WACC of China Television Co (9928.TW) is 10.1%.
| Range | Selected | |
| Cost of equity | 4.7% - 7.8% | 6.25% |
| Tax rate | 5.4% - 7.8% | 6.6% |
| Cost of debt | 4.0% - 22.0% | 13% |
| WACC | 4.1% - 16.0% | 10.1% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.45 | 0.68 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.7% | 7.8% |
| Tax rate | 5.4% | 7.8% |
| Debt/Equity ratio | 1.91 | 1.91 |
| Cost of debt | 4.0% | 22.0% |
| After-tax WACC | 4.1% | 16.0% |
| Selected WACC | 10.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9928.TW | China Television Co | 1.91 | 0.49 | 0.17 |
| 039340.KQ | Korea Business News Co Ltd | 0.11 | -0.12 | -0.1 |
| 6184.TW | Dafeng TV Ltd | 0.21 | 0.02 | 0.02 |
| BAGFILMS.NS | B.A.G. Films and Media Ltd | 0.83 | 0.55 | 0.31 |
| JUMPNET.NS | Jump Networks Ltd | 0.01 | 0.97 | 0.96 |
| NBC.BK | Nation Broadcasting Corporation PCL | 0.08 | 0.85 | 0.79 |
| NEXTMEDIA.NS | Next Mediaworks Ltd | 4.47 | 0.5 | 0.1 |
| RAJTV.NS | Raj Television Network Ltd | 0.09 | -0.38 | -0.35 |
| SEG.AX | Sports Entertainment Group Ltd | 0.65 | -0.55 | -0.34 |
| TVVISION.NS | TV Vision Ltd | 4.19 | 1.04 | 0.21 |
| Low | High | |
| Unlevered beta | 0.07 | 0.19 |
| Relevered beta | 0.18 | 0.52 |
| Adjusted relevered beta | 0.45 | 0.68 |
9928.TW'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 9928.TW:
cost_of_equity (6.25%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.45) + 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.