300595.SZ WACC - Weighted Average Cost of Capital
The WACC of Ovctek China Inc (300595.SZ) is 10.0%.
| Range | Selected | |
| Cost of equity | 8.8% - 11.4% | 10.1% |
| Tax rate | 13.1% - 13.7% | 13.4% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.8% - 11.2% | 10.0% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.01 | 1.08 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.8% | 11.4% |
| Tax rate | 13.1% | 13.7% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.8% | 11.2% |
| Selected WACC | 10.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300595.SZ | Ovctek China Inc | 0.02 | 2.13 | 2.09 |
| 002382.SZ | Blue Sail Medical Co Ltd | 0.83 | 1 | 0.58 |
| 1066.HK | Shandong Weigao Group Medical Polymer Co Ltd | 0.16 | 1.13 | 0.99 |
| 300888.SZ | Winner Medical Co Ltd | 0.14 | 1.21 | 1.08 |
| 600529.SS | Shandong Pharmaceutical Glass Co Ltd | 0.05 | 0.77 | 0.74 |
| 603658.SS | Autobio Diagnostics Co Ltd | 0.05 | 1.04 | 0.99 |
| 688016.SS | Shanghai MicroPort Endovascular MedTech Group Co Ltd | 0 | 1.56 | 1.56 |
| 688029.SS | Micro-Tech Nanjing Co Ltd | 0.01 | 1.32 | 1.31 |
| 688050.SS | Eyebright Medical Technology Beijing Co Ltd | 0.05 | 1.17 | 1.12 |
| 688289.SS | Sansure Biotech Inc | 0.04 | 1.32 | 1.28 |
| 9997.HK | Kangji Medical Holdings Ltd | 0 | 0.53 | 0.53 |
| Low | High | |
| Unlevered beta | 0.99 | 1.12 |
| Relevered beta | 1.01 | 1.12 |
| Adjusted relevered beta | 1.01 | 1.08 |
300595.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 300595.SZ:
cost_of_equity (10.10%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.01) + 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.