603259.SS
WuXi AppTec Co Ltd
Price:  
70.82 
CNY
Volume:  
23,136,592.00
China | Life Sciences Tools & Services
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

603259.SS WACC - Weighted Average Cost of Capital

The WACC of WuXi AppTec Co Ltd (603259.SS) is 11.5%.

The Cost of Equity of WuXi AppTec Co Ltd (603259.SS) is 11.80%.
The Cost of Debt of WuXi AppTec Co Ltd (603259.SS) is 5.00%.

Range Selected
Cost of equity 10.20% - 13.40% 11.80%
Tax rate 15.50% - 16.50% 16.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 10.0% - 13.1% 11.5%
WACC

603259.SS WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 1.23 1.37
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.20% 13.40%
Tax rate 15.50% 16.50%
Debt/Equity ratio 0.04 0.04
Cost of debt 5.00% 5.00%
After-tax WACC 10.0% 13.1%
Selected WACC 11.5%

603259.SS'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 603259.SS:

cost_of_equity (11.80%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.23) + 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.