1833.HK WACC - Weighted Average Cost of Capital
The WACC of Ping An Healthcare and Technology Co Ltd (1833.HK) is 9.9%.
| Range | Selected | |
| Cost of equity | 7.7% - 12.1% | 9.9% |
| Tax rate | 0.8% - 1.0% | 0.9% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.7% - 12.0% | 9.9% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.81 | 1.17 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.7% | 12.1% |
| Tax rate | 0.8% | 1.0% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.7% | 12.0% |
| Selected WACC | 9.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1833.HK | Ping An Healthcare and Technology Co Ltd | 0 | 1.36 | 1.35 |
| 1387.HK | China Dili Group | 0.91 | 0.21 | 0.11 |
| 2158.HK | Yidu Tech Inc | 0.02 | 1.55 | 1.52 |
| 300253.SZ | Winning Health Technology Group Co Ltd | 0.06 | 1.9 | 1.79 |
| 300451.SZ | B-SOFT Co Ltd | 0.01 | 2.06 | 2.04 |
| 300550.SZ | Heren Health Co Ltd | 0.03 | 1.01 | 0.98 |
| 600767.SS | Winsan Chengdu Medical Science and Technology Co Ltd | 0.23 | 0.26 | 0.22 |
| 603990.SS | Suzhou MedicalSystem Technology Co Ltd | 0.09 | 1.29 | 1.19 |
| 6819.HK | Intellicentrics Global Holdings Ltd | 0.13 | 0.04 | 0.03 |
| 9992.HK | Pop Mart International Group Ltd | 0 | 0.31 | 0.31 |
| Low | High | |
| Unlevered beta | 0.71 | 1.25 |
| Relevered beta | 0.72 | 1.25 |
| Adjusted relevered beta | 0.81 | 1.17 |
1833.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 1833.HK:
cost_of_equity (9.90%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.81) + 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.