002932.SZ WACC - Weighted Average Cost of Capital
The WACC of Wuhan Easy Diagnosis Biomedicine Co Ltd (002932.SZ) is 9.6%.
| Range | Selected | |
| Cost of equity | 8.3% - 11.1% | 9.7% |
| Tax rate | 14.6% - 16.0% | 15.3% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.3% - 11.0% | 9.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.92 | 1.04 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.3% | 11.1% |
| Tax rate | 14.6% | 16.0% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.3% | 11.0% |
| Selected WACC | 9.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002932.SZ | Wuhan Easy Diagnosis Biomedicine Co Ltd | 0.01 | 1.12 | 1.11 |
| 002432.SZ | Andon Health Co Ltd | 0.19 | 0.98 | 0.84 |
| 1358.HK | PW Medtech Group Ltd | 0.01 | 0.17 | 0.17 |
| 1858.HK | Beijing Chunlizhengda Medical Instruments Co Ltd | 0 | -0.2 | -0.19 |
| 300273.SZ | Zhuhai Hokai Medical Instruments Co Ltd | 5.84 | 0.01 | 0 |
| 300314.SZ | Ningbo David Medical Device Co Ltd | 0 | 1.55 | 1.54 |
| 603301.SS | Zhende Medical Co Ltd | 0.11 | 0.98 | 0.89 |
| 688085.SS | Shanghai Sanyou Medical Co Ltd | 0.01 | 1.02 | 1.01 |
| 688108.SS | Sino Medical Sciences Technology Inc | 0.06 | 1.53 | 1.46 |
| 688393.SS | Guangzhou LBP Medicine Science & Technology Co Ltd | 0 | 1.65 | 1.65 |
| Low | High | |
| Unlevered beta | 0.87 | 1.05 |
| Relevered beta | 0.88 | 1.06 |
| Adjusted relevered beta | 0.92 | 1.04 |
002932.SZ'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 002932.SZ:
cost_of_equity (9.70%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.92) + 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.