2666.HK WACC - Weighted Average Cost of Capital

The WACC of Genertec Universal Medical Group Co Ltd (2666.HK) is 7.9%.

The Cost of Equity of Genertec Universal Medical Group Co Ltd (2666.HK) is 19.35%.

The Cost of Debt of Genertec Universal Medical Group Co Ltd (2666.HK) is 7.80%.

	Range	Selected
Cost of equity	13.90% - 24.80%	19.35%
Tax rate	23.10% - 23.30%	23.20%
Cost of debt	4.20% - 11.40%	7.80%
WACC	4.8% - 11.0%	7.9%

WACC

2666.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.84	3

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.90%	24.80%

Tax rate	23.10%	23.30%
Debt/Equity ratio	6.07	6.07
Cost of debt	4.20%	11.40%

After-tax WACC	4.8%	11.0%


Selected WACC	7.9%

2666.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 2666.HK:

cost_of_equity (19.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.84) + 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.