300633.SZ WACC - Weighted Average Cost of Capital
The WACC of SonoScape Medical Corp (300633.SZ) is 9.8%.
| Range | Selected | |
| Cost of equity | 8.3% - 11.4% | 9.85% |
| Tax rate | 3.6% - 3.9% | 3.75% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.2% - 11.3% | 9.8% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.92 | 1.09 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.3% | 11.4% |
| Tax rate | 3.6% | 3.9% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.2% | 11.3% |
| Selected WACC | 9.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300633.SZ | SonoScape Medical Corp | 0.03 | 1.7 | 1.66 |
| 002432.SZ | Andon Health Co Ltd | 0.19 | 0.97 | 0.83 |
| 1789.HK | AK Medical Holdings Ltd | 0.02 | 1.05 | 1.03 |
| 1858.HK | Beijing Chunlizhengda Medical Instruments Co Ltd | 0 | -0.2 | -0.19 |
| 300273.SZ | Zhuhai Hokai Medical Instruments Co Ltd | 5.84 | 0.01 | 0 |
| 300326.SZ | Shanghai Kinetic Medical Co Ltd | 0.06 | 1.52 | 1.43 |
| 603301.SS | Zhende Medical Co Ltd | 0.11 | 0.99 | 0.9 |
| 688301.SS | iRay Technology Co Ltd | 0.2 | 1.45 | 1.21 |
| 688389.SS | Shenzhen Lifotronic Technology Co Ltd | 0.11 | 1.49 | 1.35 |
| 688617.SS | APT Medical Inc | 0 | 0.6 | 0.6 |
| Low | High | |
| Unlevered beta | 0.87 | 1.1 |
| Relevered beta | 0.88 | 1.13 |
| Adjusted relevered beta | 0.92 | 1.09 |
300633.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 300633.SZ:
cost_of_equity (9.85%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.92) + 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.