1345.HK WACC - Weighted Average Cost of Capital

The WACC of China Pioneer Pharma Holdings Ltd (1345.HK) is 7.0%.

The Cost of Equity of China Pioneer Pharma Holdings Ltd (1345.HK) is 7.10%.

The Cost of Debt of China Pioneer Pharma Holdings Ltd (1345.HK) is 6.65%.

	Range	Selected
Cost of equity	5.70% - 8.50%	7.10%
Tax rate	29.50% - 30.80%	30.15%
Cost of debt	4.00% - 9.30%	6.65%
WACC	5.6% - 8.4%	7.0%

WACC

1345.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.47	0.66

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.70%	8.50%

Tax rate	29.50%	30.80%
Debt/Equity ratio	0.03	0.03
Cost of debt	4.00%	9.30%

After-tax WACC	5.6%	8.4%


Selected WACC	7.0%

1345.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 1345.HK:

cost_of_equity (7.10%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.47) + 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.