FLYY.CN WACC - Weighted Average Cost of Capital

The WACC of Media Central Corporation Inc (FLYY.CN) is 5.2%.

The Cost of Equity of Media Central Corporation Inc (FLYY.CN) is 5.50%.

The Cost of Debt of Media Central Corporation Inc (FLYY.CN) is 4.25%.

	Range	Selected
Cost of equity	4.80% - 6.20%	5.50%
Tax rate	0.50% - 0.90%	0.70%
Cost of debt	4.00% - 4.50%	4.25%
WACC	4.7% - 5.8%	5.2%

WACC

FLYY.CN WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.33	0.33

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.80%	6.20%

Tax rate	0.50%	0.90%
Debt/Equity ratio	0.26	0.26
Cost of debt	4.00%	4.50%

After-tax WACC	4.7%	5.8%


Selected WACC	5.2%

FLYY.CN'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 FLYY.CN:

cost_of_equity (5.50%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.33) + 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.