The WACC of Bamboos Health Care Holdings Ltd (2293.HK) is 7.4%.
Range | Selected | |
Cost of equity | 6.7% - 9.7% | 8.2% |
Tax rate | 18.2% - 19.5% | 18.85% |
Cost of debt | 4.0% - 7.7% | 5.85% |
WACC | 5.9% - 8.8% | 7.4% |
Category | Low | High |
Long-term bond rate | 2.9% | 3.4% |
Equity market risk premium | 6.0% | 7.0% |
Adjusted beta | 0.65 | 0.83 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.7% | 9.7% |
Tax rate | 18.2% | 19.5% |
Debt/Equity ratio | 0.32 | 0.32 |
Cost of debt | 4.0% | 7.7% |
After-tax WACC | 5.9% | 8.8% |
Selected WACC | 7.4% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
2293.HK | Bamboos Health Care Holdings Ltd | 0.32 | 0.12 | 0.1 |
2389.HK | Beijing Enterprises Medical and Health Industry Group Ltd | 0.06 | 0.14 | 0.13 |
3309.HK | C-Mer Eye Care Holdings Ltd | 0.19 | 1.22 | 1.06 |
6034.T | MRT Inc | 0.26 | 0.08 | 0.07 |
8307.HK | Medicskin Holdings Ltd | 0.41 | 0.72 | 0.54 |
8315.HK | Greatwalle Inc | 0.36 | 1.06 | 0.82 |
928.HK | Life Healthcare Group Ltd | 0.03 | 0.66 | 0.64 |
D.BK | Dental Corporation PCL | 0.48 | 0.75 | 0.54 |
LDC.BK | LDC Dental PCL | 1.21 | 1.12 | 0.57 |
OTX.SI | Medinex Ltd | 0.07 | -0.07 | -0.07 |
Low | High | |
Unlevered beta | 0.38 | 0.55 |
Relevered beta | 0.48 | 0.75 |
Adjusted relevered beta | 0.65 | 0.83 |
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 2293.HK:
cost_of_equity (8.20%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.65) + 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.