300485.SZ WACC - Weighted Average Cost of Capital
The WACC of Beijing Science Sun Pharmaceutical Co Ltd (300485.SZ) is 9.2%.
| Range | Selected | |
| Cost of equity | 10.7% - 17.7% | 14.2% |
| Tax rate | 15.2% - 17.5% | 16.35% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.5% - 10.9% | 9.2% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.3 | 1.97 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.7% | 17.7% |
| Tax rate | 15.2% | 17.5% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.5% | 10.9% |
| Selected WACC | 9.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300485.SZ | Beijing Science Sun Pharmaceutical Co Ltd | 1.16 | 1.14 | 0.57 |
| 000518.SZ | Jiangsu Sihuan Bioengineering Co Ltd | 0.02 | 1.51 | 1.49 |
| 002880.SZ | Shenzhen Weiguang Biological Products Co Ltd | 0.11 | 0.9 | 0.83 |
| 300204.SZ | Staidson Beijing BioPharmaceuticals Co Ltd | 0 | 1.36 | 1.36 |
| 300238.SZ | Guanhao Biotech Co Ltd | 0.03 | 1.67 | 1.63 |
| 300683.SZ | Wuhan Hiteck Biological Pharma Co Ltd | 0.01 | 1.44 | 1.42 |
| 603739.SS | Qingdao Vland Biotech INC | 0.2 | 1.53 | 1.31 |
| 688198.SS | Beijing Balance Medical Technology Co Ltd | 0 | 0.73 | 0.73 |
| 688278.SS | Xiamen Amoytop Biotech Co Ltd | 0 | 0.45 | 0.45 |
| 688336.SS | Sunshine Guojian Pharmaceutical Shanghai Co Ltd | 0 | 0.66 | 0.66 |
| 8247.HK | Biosino Bio-Technology and Science Inc | 1.69 | 0.45 | 0.19 |
| Low | High | |
| Unlevered beta | 0.73 | 1.31 |
| Relevered beta | 1.45 | 2.45 |
| Adjusted relevered beta | 1.3 | 1.97 |
300485.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 300485.SZ:
cost_of_equity (14.20%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.3) + 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.