300639.SZ WACC - Weighted Average Cost of Capital
The WACC of Guangdong Hybribio Biotech Co Ltd (300639.SZ) is 9.4%.
| Range | Selected | |
| Cost of equity | 8.0% - 11.1% | 9.55% |
| Tax rate | 15.2% - 15.7% | 15.45% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.9% - 10.9% | 9.4% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.87 | 1.04 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.0% | 11.1% |
| Tax rate | 15.2% | 15.7% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.9% | 10.9% |
| Selected WACC | 9.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300639.SZ | Guangdong Hybribio Biotech Co Ltd | 0.02 | 1.69 | 1.66 |
| 002880.SZ | Shenzhen Weiguang Biological Products Co Ltd | 0.11 | 0.89 | 0.81 |
| 300238.SZ | Guanhao Biotech Co Ltd | 0.01 | 1.68 | 1.66 |
| 300294.SZ | Boya Bio-pharmaceutical Group Co Ltd | 0.02 | 0.74 | 0.73 |
| 600645.SS | Vcanbio Cell & Gene Engineering Corp Ltd | 0.01 | 1.01 | 1 |
| 603387.SS | Getein Biotech Inc | 0.16 | 1.24 | 1.09 |
| 688198.SS | Beijing Balance Medical Technology Co Ltd | 0 | 0.74 | 0.74 |
| 688278.SS | Xiamen Amoytop Biotech Co Ltd | 0 | 0.46 | 0.46 |
| 688336.SS | Sunshine Guojian Pharmaceutical Shanghai Co Ltd | 0 | 0.71 | 0.71 |
| 688488.SS | Jiangsu Aidea Pharmaceutical Co Ltd | 0.1 | 1.58 | 1.46 |
| Low | High | |
| Unlevered beta | 0.78 | 1.04 |
| Relevered beta | 0.81 | 1.06 |
| Adjusted relevered beta | 0.87 | 1.04 |
300639.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 300639.SZ:
cost_of_equity (9.55%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.87) + 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.