1548.HK WACC - Weighted Average Cost of Capital

The WACC of Genscript Biotech Corp (1548.HK) is 10.3%.

The Cost of Equity of Genscript Biotech Corp (1548.HK) is 10.70%.

The Cost of Debt of Genscript Biotech Corp (1548.HK) is 7.55%.

	Range	Selected
Cost of equity	7.90% - 13.50%	10.70%
Tax rate	0.60% - 1.20%	0.90%
Cost of debt	7.00% - 8.10%	7.55%
WACC	7.8% - 12.9%	10.3%

WACC

1548.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.83	1.39

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	13.50%

Tax rate	0.60%	1.20%
Debt/Equity ratio	0.12	0.12
Cost of debt	7.00%	8.10%

After-tax WACC	7.8%	12.9%


Selected WACC	10.3%

1548.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 1548.HK:

cost_of_equity (10.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.83) + 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.