2293.HK
Bamboos Health Care Holdings Ltd
Price:  
0.51 
HKD
Volume:  
4,000
Hong Kong | Health Care Providers & Services

2293.HK WACC - Weighted Average Cost of Capital

The WACC of Bamboos Health Care Holdings Ltd (2293.HK) is 7.4%.

The Cost of Equity of Bamboos Health Care Holdings Ltd (2293.HK) is 8.2%.
The Cost of Debt of Bamboos Health Care Holdings Ltd (2293.HK) is 5.85%.

RangeSelected
Cost of equity6.7% - 9.7%8.2%
Tax rate18.2% - 19.5%18.85%
Cost of debt4.0% - 7.7%5.85%
WACC5.9% - 8.8%7.4%
WACC

2293.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.650.83
Additional risk adjustments0.0%0.5%
Cost of equity6.7%9.7%
Tax rate18.2%19.5%
Debt/Equity ratio
0.320.32
Cost of debt4.0%7.7%
After-tax WACC5.9%8.8%
Selected WACC7.4%

2293.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 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.