1066.HK WACC - Weighted Average Cost of Capital
The WACC of Shandong Weigao Group Medical Polymer Co Ltd (1066.HK) is 9.8%.
| Range | Selected | |
| Cost of equity | 9.6% - 12.2% | 10.9% |
| Tax rate | 13.6% - 14.2% | 13.9% |
| Cost of debt | 4.0% - 4.6% | 4.3% |
| WACC | 8.6% - 11.0% | 9.8% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.12 | 1.2 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.6% | 12.2% |
| Tax rate | 13.6% | 14.2% |
| Debt/Equity ratio | 0.18 | 0.18 |
| Cost of debt | 4.0% | 4.6% |
| After-tax WACC | 8.6% | 11.0% |
| Selected WACC | 9.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1066.HK | Shandong Weigao Group Medical Polymer Co Ltd | 0.18 | 1.19 | 1.03 |
| 002382.SZ | Blue Sail Medical Co Ltd | 0.88 | 1.03 | 0.58 |
| 1763.HK | China Isotope & Radiation Corp | 0.69 | 0.72 | 0.46 |
| 300888.SZ | Winner Medical Co Ltd | 0.12 | 1.25 | 1.13 |
| 600529.SS | Shandong Pharmaceutical Glass Co Ltd | 0.05 | 0.78 | 0.75 |
| 603658.SS | Autobio Diagnostics Co Ltd | 0.05 | 1.05 | 1.01 |
| 688016.SS | Shanghai MicroPort Endovascular MedTech Group Co Ltd | 0 | 1.59 | 1.58 |
| 688029.SS | Micro-Tech Nanjing Co Ltd | 0.01 | 1.32 | 1.31 |
| 688050.SS | Eyebright Medical Technology Beijing Co Ltd | 0.04 | 1.16 | 1.12 |
| 688289.SS | Sansure Biotech Inc | 0.04 | 1.36 | 1.32 |
| Low | High | |
| Unlevered beta | 1.02 | 1.12 |
| Relevered beta | 1.18 | 1.3 |
| Adjusted relevered beta | 1.12 | 1.2 |
1066.HK'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 1066.HK:
cost_of_equity (10.90%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.12) + 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.