603716.SS WACC - Weighted Average Cost of Capital
The WACC of Thalys Medical Technology Group Inc (603716.SS) is 9.6%.
| Range | Selected | |
| Cost of equity | 9.6% - 14.0% | 11.8% |
| Tax rate | 21.9% - 26.6% | 24.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.0% - 11.1% | 9.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.13 | 1.45 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.6% | 14.0% |
| Tax rate | 21.9% | 26.6% |
| Debt/Equity ratio | 0.39 | 0.39 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.0% | 11.1% |
| Selected WACC | 9.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 603716.SS | Thalys Medical Technology Group Inc | 0.39 | 1.36 | 1.05 |
| 300204.SZ | Staidson Beijing BioPharmaceuticals Co Ltd | 0.01 | 1.44 | 1.43 |
| 300289.SZ | Beijing Leadman Biochemistry Co Ltd | 0 | 1.28 | 1.28 |
| 300294.SZ | Boya Bio-pharmaceutical Group Co Ltd | 0.02 | 0.74 | 0.73 |
| 300381.SZ | Guangdong VTR Bio-Tech Co Ltd | 0.02 | 1.34 | 1.32 |
| 300683.SZ | Wuhan Hiteck Biological Pharma Co Ltd | 0.01 | 1.44 | 1.43 |
| 603739.SS | Qingdao Vland Biotech INC | 0.22 | 1.55 | 1.32 |
| 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 |
| 8247.HK | Biosino Bio-Technology and Science Inc | 1.87 | 0.63 | 0.26 |
| Low | High | |
| Unlevered beta | 0.92 | 1.3 |
| Relevered beta | 1.19 | 1.67 |
| Adjusted relevered beta | 1.13 | 1.45 |
603716.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 603716.SS:
cost_of_equity (11.80%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.13) + 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.