1358.HK WACC - Weighted Average Cost of Capital

The WACC of PW Medtech Group Ltd (1358.HK) is 12.2%.

The Cost of Equity of PW Medtech Group Ltd (1358.HK) is 12.25%.

The Cost of Debt of PW Medtech Group Ltd (1358.HK) is 9.20%.

	Range	Selected
Cost of equity	10.70% - 13.80%	12.25%
Tax rate	7.10% - 13.20%	10.15%
Cost of debt	4.00% - 14.40%	9.20%
WACC	10.6% - 13.8%	12.2%

WACC

1358.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.31	1.43

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.70%	13.80%

Tax rate	7.10%	13.20%
Debt/Equity ratio	0.01	0.01
Cost of debt	4.00%	14.40%

After-tax WACC	10.6%	13.8%


Selected WACC	12.2%

1358.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 1358.HK:

cost_of_equity (12.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.31) + 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.