3332.HK WACC - Weighted Average Cost of Capital

The WACC of Nanjing Sinolife United Co Ltd (3332.HK) is 6.7%.

The Cost of Equity of Nanjing Sinolife United Co Ltd (3332.HK) is 6.80%.

The Cost of Debt of Nanjing Sinolife United Co Ltd (3332.HK) is 5.65%.

	Range	Selected
Cost of equity	5.40% - 8.20%	6.80%
Tax rate	11.20% - 13.60%	12.40%
Cost of debt	4.00% - 7.30%	5.65%
WACC	5.3% - 8.1%	6.7%

WACC

3332.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.42	0.62

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.40%	8.20%

Tax rate	11.20%	13.60%
Debt/Equity ratio	0.05	0.05
Cost of debt	4.00%	7.30%

After-tax WACC	5.3%	8.1%


Selected WACC	6.7%

3332.HK'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 3332.HK:

cost_of_equity (6.80%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.42) + 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.