603301.SS
Zhende Medical Co Ltd
Price:  
20.76 
CNY
Volume:  
2,126,218
China | Health Care Equipment & Supplies

603301.SS WACC - Weighted Average Cost of Capital

The WACC of Zhende Medical Co Ltd (603301.SS) is 10.6%.

The Cost of Equity of Zhende Medical Co Ltd (603301.SS) is 11.35%.
The Cost of Debt of Zhende Medical Co Ltd (603301.SS) is 5%.

RangeSelected
Cost of equity9.9% - 12.8%11.35%
Tax rate12.2% - 13.7%12.95%
Cost of debt5.0% - 5.0%5%
WACC9.3% - 11.9%10.6%
WACC

603301.SS WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta1.171.28
Additional risk adjustments0.0%0.5%
Cost of equity9.9%12.8%
Tax rate12.2%13.7%
Debt/Equity ratio
0.110.11
Cost of debt5.0%5.0%
After-tax WACC9.3%11.9%
Selected WACC10.6%

603301.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 603301.SS:

cost_of_equity (11.35%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.17) + 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.