1515.HK
China Resources Medical Holdings Company Ltd
Price:  
3.67 
HKD
Volume:  
1,452,500.00
China | Health Care Providers & Services
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1515.HK WACC - Weighted Average Cost of Capital

The WACC of China Resources Medical Holdings Company Ltd (1515.HK) is 9.6%.

The Cost of Equity of China Resources Medical Holdings Company Ltd (1515.HK) is 12.85%.
The Cost of Debt of China Resources Medical Holdings Company Ltd (1515.HK) is 4.55%.

Range Selected
Cost of equity 10.80% - 14.90% 12.85%
Tax rate 23.00% - 27.40% 25.20%
Cost of debt 4.00% - 5.10% 4.55%
WACC 8.1% - 11.0% 9.6%
WACC

1515.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 1.33 1.59
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.80% 14.90%
Tax rate 23.00% 27.40%
Debt/Equity ratio 0.54 0.54
Cost of debt 4.00% 5.10%
After-tax WACC 8.1% 11.0%
Selected WACC 9.6%

1515.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 1515.HK:

cost_of_equity (12.85%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.33) + 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.