300326.SZ WACC - Weighted Average Cost of Capital

The WACC of Shanghai Kinetic Medical Co Ltd (300326.SZ) is 10.9%.

The Cost of Equity of Shanghai Kinetic Medical Co Ltd (300326.SZ) is 11.35%.

The Cost of Debt of Shanghai Kinetic Medical Co Ltd (300326.SZ) is 5.00%.

	Range	Selected
Cost of equity	9.80% - 12.90%	11.35%
Tax rate	17.70% - 28.70%	23.20%
Cost of debt	5.00% - 5.00%	5.00%
WACC	9.4% - 12.3%	10.9%

WACC

300326.SZ WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.16	1.29

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	12.90%

Tax rate	17.70%	28.70%
Debt/Equity ratio	0.07	0.07
Cost of debt	5.00%	5.00%

After-tax WACC	9.4%	12.3%


Selected WACC	10.9%

300326.SZ'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 300326.SZ:

cost_of_equity (11.35%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.16) + 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.