3600.HK WACC - Weighted Average Cost of Capital
The WACC of Modern Dental Group Ltd (3600.HK) is 8.7%.
| Range | Selected | |
| Cost of equity | 7.6% - 12.2% | 9.9% |
| Tax rate | 21.8% - 22.5% | 22.15% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.7% - 10.6% | 8.7% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.79 | 1.2 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.6% | 12.2% |
| Tax rate | 21.8% | 22.5% |
| Debt/Equity ratio | 0.23 | 0.23 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.7% | 10.6% |
| Selected WACC | 8.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3600.HK | Modern Dental Group Ltd | 0.23 | 0.18 | 0.15 |
| 043150.KQ | Value Added Technology Co Ltd | 0.14 | 0.63 | 0.57 |
| 099190.KQ | I Sens Inc | 0.33 | 0.64 | 0.51 |
| 145720.KS | Dentium Co Ltd | 0.46 | 0.79 | 0.58 |
| 1612.HK | Vincent Medical Holdings Ltd | 0.24 | 0.53 | 0.45 |
| 300165.SZ | Jiangsu Skyray Instrument Co Ltd | 0.71 | 1.72 | 1.11 |
| 300246.SZ | Guangdong Biolight Meditech Co Ltd | 0.29 | 1.33 | 1.09 |
| 300412.SZ | Zhejiang Canaan Technology Ltd | 0.2 | 1.7 | 1.48 |
| 300562.SZ | Guangdong Transtek Medical Electronics Co Ltd | 0.1 | 1.56 | 1.44 |
| 6823.T | Rion Co Ltd | 0.88 | 1.3 | 0.78 |
| Low | High | |
| Unlevered beta | 0.58 | 0.9 |
| Relevered beta | 0.69 | 1.3 |
| Adjusted relevered beta | 0.79 | 1.2 |
3600.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 3600.HK:
cost_of_equity (9.90%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.79) + 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.