2666.HK
Genertec Universal Medical Group Co Ltd
Price:  
5.16 
HKD
Volume:  
2,563,000.00
China | Health Care Providers & Services
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2666.HK WACC - Weighted Average Cost of Capital

The WACC of Genertec Universal Medical Group Co Ltd (2666.HK) is 8.1%.

The Cost of Equity of Genertec Universal Medical Group Co Ltd (2666.HK) is 19.90%.
The Cost of Debt of Genertec Universal Medical Group Co Ltd (2666.HK) is 7.80%.

Range Selected
Cost of equity 14.40% - 25.40% 19.90%
Tax rate 23.10% - 23.30% 23.20%
Cost of debt 4.20% - 11.40% 7.80%
WACC 4.9% - 11.2% 8.1%
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 1.94 3.08
Additional risk adjustments 0.0% 0.5%
Cost of equity 14.40% 25.40%
Tax rate 23.10% 23.30%
Debt/Equity ratio 5.68 5.68
Cost of debt 4.20% 11.40%
After-tax WACC 4.9% 11.2%
Selected WACC 8.1%

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 (19.90%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.94) + 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.