CM8.AX WACC - Weighted Average Cost of Capital
The WACC of Crowd Media Holdings Ltd (CM8.AX) is 7.3%.
| Range | Selected | |
| Cost of equity | 6.1% - 9.1% | 7.6% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 4.0% - 4.9% | 4.45% |
| WACC | 5.8% - 8.7% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 4.1% | 4.6% |
| Equity market risk premium | 5.5% | 6.5% |
| Adjusted beta | 0.35 | 0.61 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 9.1% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 0.07 | 0.07 |
| Cost of debt | 4.0% | 4.9% |
| After-tax WACC | 5.8% | 8.7% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CM8.AX | Crowd Media Holdings Ltd | 0.06 | 2.01 | 1.93 |
| 1849.HK | Am Group Holdings Ltd | 0.57 | 0.19 | 0.14 |
| 72.HK | Modern Media Holdings Ltd | 1.76 | 1.18 | 0.53 |
| 8130.HK | Dadi International Group Ltd | 16.06 | 0.79 | 0.06 |
| EN1.AX | Engage:BDR Ltd | 0.11 | 0.86 | 0.8 |
| GTN.AX | GTN Ltd | 0.1 | 0.4 | 0.37 |
| MXO.AX | Motio Ltd | 0.28 | 1.12 | 0.94 |
| PPL.AX | Pureprofile Ltd | 0.09 | 1.74 | 1.63 |
| SEG.AX | Sports Entertainment Group Ltd | 0.67 | -0.5 | -0.34 |
| VERTOZ.NS | Vertoz Advertising Ltd | 0.02 | 0.95 | 0.94 |
| Low | High | |
| Unlevered beta | 0.46 | 0.86 |
| Relevered beta | 0.03 | 0.42 |
| Adjusted relevered beta | 0.35 | 0.61 |
CM8.AX'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 CM8.AX:
cost_of_equity (7.60%) = risk_free_rate (4.35%) + equity_risk_premium (6.00%) * adjusted_beta (0.35) + 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.