1143.HK WACC - Weighted Average Cost of Capital

The WACC of Link-Asia International Medtech Group Ltd (1143.HK) is 7.1%.

The Cost of Equity of Link-Asia International Medtech Group Ltd (1143.HK) is 9.85%.

The Cost of Debt of Link-Asia International Medtech Group Ltd (1143.HK) is 6.10%.

	Range	Selected
Cost of equity	8.10% - 11.60%	9.85%
Tax rate	7.60% - 19.70%	13.65%
Cost of debt	4.00% - 8.20%	6.10%
WACC	5.5% - 8.7%	7.1%

WACC

1143.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.87	1.11

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.10%	11.60%

Tax rate	7.60%	19.70%
Debt/Equity ratio	1.35	1.35
Cost of debt	4.00%	8.20%

After-tax WACC	5.5%	8.7%


Selected WACC	7.1%

1143.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 1143.HK:

cost_of_equity (9.85%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.87) + 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.