300404.SZ WACC - Weighted Average Cost of Capital
The WACC of Guangzhou Boji Medical & Biotechnological Co Ltd (300404.SZ) is 7.9%.
| Range | Selected | |
| Cost of equity | 6.6% - 9.3% | 7.95% |
| Tax rate | 15.7% - 33.3% | 24.5% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.6% - 9.2% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.64 | 0.79 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.6% | 9.3% |
| Tax rate | 15.7% | 33.3% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.6% | 9.2% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300404.SZ | Guangzhou Boji Medical & Biotechnological Co Ltd | 0.01 | 1.43 | 1.41 |
| 245620.KQ | Eone Diagnomics Genome Center Co Ltd | 1.24 | 0.59 | 0.3 |
| 278650.KQ | Knotus Co Ltd | 0.25 | 0.67 | 0.56 |
| 300030.SZ | Guangzhou Improve Medical Instruments Co Ltd | 0.18 | 0.77 | 0.67 |
| 300347.SZ | Hangzhou Tigermed Consulting Co Ltd | 0.08 | 1.65 | 1.55 |
| 4880.T | CellSource Co Ltd | 0.01 | 0.91 | 0.9 |
| 539267.BO | Dr Habeebullah Life Sciences Ltd | 0.07 | 0.22 | 0.21 |
| 688068.SS | Beijing Hotgen Biotech Co Ltd | 0 | 0.7 | 0.7 |
| CTE.AX | Cryosite Ltd | 0.06 | -0.48 | -0.46 |
| MGRC.KL | Malaysian Genomics Resource Centre Bhd | 0.05 | 0.41 | 0.4 |
| Low | High | |
| Unlevered beta | 0.49 | 0.68 |
| Relevered beta | 0.46 | 0.69 |
| Adjusted relevered beta | 0.64 | 0.79 |
300404.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 300404.SZ:
cost_of_equity (7.95%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.64) + 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.