1246.HK WACC - Weighted Average Cost of Capital

The WACC of Boill Healthcare Holdings Ltd (1246.HK) is 7.5%.

The Cost of Equity of Boill Healthcare Holdings Ltd (1246.HK) is 15.00%.

The Cost of Debt of Boill Healthcare Holdings Ltd (1246.HK) is 7.60%.

	Range	Selected
Cost of equity	5.10% - 24.90%	15.00%
Tax rate	2.80% - 5.80%	4.30%
Cost of debt	7.00% - 8.20%	7.60%
WACC	6.7% - 8.3%	7.5%

WACC

1246.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	-1.55	1.37

Additional risk adjustments	11.5%	12.0%
Cost of equity	5.10%	24.90%

Tax rate	2.80%	5.80%
Debt/Equity ratio	29.53	29.53
Cost of debt	7.00%	8.20%

After-tax WACC	6.7%	8.3%


Selected WACC	7.5%

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 (15.00%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (-1.55) + risk_adjustments (11.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.