1246.HK
Boill Healthcare Holdings Ltd
Price:  
0.02 
HKD
Volume:  
3,030,000.00
Hong Kong | Construction & Engineering
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1246.HK WACC - Weighted Average Cost of Capital

The WACC of Boill Healthcare Holdings Ltd (1246.HK) is 7.6%.

The Cost of Equity of Boill Healthcare Holdings Ltd (1246.HK) is 17.15%.
The Cost of Debt of Boill Healthcare Holdings Ltd (1246.HK) is 7.60%.

Range Selected
Cost of equity 5.50% - 28.80% 17.15%
Tax rate 2.80% - 5.80% 4.30%
Cost of debt 7.00% - 8.20% 7.60%
WACC 6.8% - 8.4% 7.6%
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 -1.74 1.71
Additional risk adjustments 13.0% 13.5%
Cost of equity 5.50% 28.80%
Tax rate 2.80% 5.80%
Debt/Equity ratio 29.53 29.53
Cost of debt 7.00% 8.20%
After-tax WACC 6.8% 8.4%
Selected WACC 7.6%

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 (17.15%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (-1.74) + risk_adjustments (13.25%)

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