1246.HK WACC - Weighted Average Cost of Capital
The WACC of Boill Healthcare Holdings Ltd (1246.HK) is 7.6%.
| Range | Selected | |
| Cost of equity | 5.2% - 30.5% | 17.85% |
| Tax rate | 2.8% - 5.8% | 4.3% |
| Cost of debt | 7.0% - 8.2% | 7.6% |
| WACC | 6.7% - 8.5% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | -2.21 | 1.6 |
| Additional risk adjustments | 15.5% | 16.0% |
| Cost of equity | 5.2% | 30.5% |
| Tax rate | 2.8% | 5.8% |
| Debt/Equity ratio | 29.53 | 29.53 |
| Cost of debt | 7.0% | 8.2% |
| After-tax WACC | 6.7% | 8.5% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1246.HK | Boill Healthcare Holdings Ltd | 29.53 | -0.23 | -0.01 |
| 1746.HK | Man Shun Group (Holdings) Ltd | 0 | -0.31 | -0.31 |
| 1751.HK | Kingland Group Holdings Ltd | 0.19 | 0.27 | 0.23 |
| 2193.HK | Man King Holdings Ltd | 0.12 | 0.09 | 0.08 |
| 8023.HK | Kwong Man Kee Group Ltd | 0.08 | -0.44 | -0.41 |
| 8262.HK | Super Strong Holdings Ltd | 0.03 | -0.45 | -0.44 |
| 8316.HK | Quantong Holdings Ltd | 0.19 | -0.4 | -0.34 |
| 8366.HK | Zhejiang United Investment Holdings Group Ltd | 0.5 | 0.69 | 0.46 |
| 8445.HK | Noble Engineering Group Holdings Ltd | 0.01 | 0.05 | 0.05 |
| 8601.HK | Boltek Holdings Ltd | 0.04 | 0.28 | 0.27 |
| Low | High | |
| Unlevered beta | -0.13 | 0.06 |
| Relevered beta | -3.79 | 1.9 |
| Adjusted relevered beta | -2.21 | 1.6 |
1246.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 1246.HK:
cost_of_equity (17.85%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (-2.21) + risk_adjustments (15.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.