300482.SZ
Guangzhou Wondfo Biotech Co Ltd
Price:  
22.06 
CNY
Volume:  
4,377,874
China | Health Care Equipment & Supplies

300482.SZ WACC - Weighted Average Cost of Capital

The WACC of Guangzhou Wondfo Biotech Co Ltd (300482.SZ) is 10.4%.

The Cost of Equity of Guangzhou Wondfo Biotech Co Ltd (300482.SZ) is 10.75%.
The Cost of Debt of Guangzhou Wondfo Biotech Co Ltd (300482.SZ) is 5%.

RangeSelected
Cost of equity8.8% - 12.7%10.75%
Tax rate10.1% - 11.2%10.65%
Cost of debt5.0% - 5.0%5%
WACC8.6% - 12.3%10.4%
WACC

300482.SZ WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta11.27
Additional risk adjustments0.0%0.5%
Cost of equity8.8%12.7%
Tax rate10.1%11.2%
Debt/Equity ratio
0.060.06
Cost of debt5.0%5.0%
After-tax WACC8.6%12.3%
Selected WACC10.4%

300482.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 300482.SZ:

cost_of_equity (10.75%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1) + 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.