KUKE WACC - Weighted Average Cost of Capital
The WACC of Kuke Music Holding Ltd (KUKE) is 10.9%.
| Range | Selected | |
| Cost of equity | 5.4% - 6.8% | 6.1% |
| Tax rate | 1.3% - 6.5% | 3.9% |
| Cost of debt | 9.8% - 23.9% | 16.85% |
| WACC | 7.5% - 14.3% | 10.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 0.35 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 6.8% |
| Tax rate | 1.3% | 6.5% |
| Debt/Equity ratio | 0.95 | 0.95 |
| Cost of debt | 9.8% | 23.9% |
| After-tax WACC | 7.5% | 14.3% |
| Selected WACC | 10.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KUKE | Kuke Music Holding Ltd | 0.95 | -0.24 | -0.13 |
| AMRU | Amaru Inc | 6360.53 | 1.62 | 0 |
| FMYR | BOMCBD Corp | 7828.93 | 0.38 | 0 |
| FUGI | Fuego Enterprises Inc | 0.3 | 0.16 | 0.12 |
| HLWD | Almost Never Films Inc | 119.7 | 0.53 | 0 |
| MVES | Movie Studio Inc | 149.13 | -0.55 | 0 |
| SAPX | Seven Arts Entertainment Inc | 99.78 | 1.07 | 0.01 |
| SEGI | Sycamore Entertainment Group Inc | 2.98 | -0.9 | -0.23 |
| UMGP | Universal Media Group Inc | 9.39 | 0.25 | 0.02 |
| YVR | Liquid Media Group Ltd | 0.1 | 0.71 | 0.64 |
| Low | High | |
| Unlevered beta | 0 | 0.01 |
| Relevered beta | 0 | 0.03 |
| Adjusted relevered beta | 0.33 | 0.35 |
KUKE'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 KUKE:
cost_of_equity (6.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * 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.