6078.HK WACC - Weighted Average Cost of Capital

The WACC of Hygeia Healthcare Holdings Co Ltd (6078.HK) is 48.8%.

The Cost of Equity of Hygeia Healthcare Holdings Co Ltd (6078.HK) is 9.25%.

The Cost of Debt of Hygeia Healthcare Holdings Co Ltd (6078.HK) is 405.30%.

	Range	Selected
Cost of equity	7.20% - 11.30%	9.25%
Tax rate	20.70% - 22.60%	21.65%
Cost of debt	4.00% - 806.60%	405.30%
WACC	6.7% - 90.9%	48.8%

WACC

6078.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.73	1.07

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.20%	11.30%

Tax rate	20.70%	22.60%
Debt/Equity ratio	0.15	0.15
Cost of debt	4.00%	806.60%

After-tax WACC	6.7%	90.9%


Selected WACC	48.8%

6078.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 6078.HK:

cost_of_equity (9.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.73) + 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.