660.HK WACC - Weighted Average Cost of Capital

The WACC of Wai Chun Bio Technology Ltd (660.HK) is 5.4%.

The Cost of Equity of Wai Chun Bio Technology Ltd (660.HK) is 11.05%.

The Cost of Debt of Wai Chun Bio Technology Ltd (660.HK) is 5.50%.

	Range	Selected
Cost of equity	6.50% - 15.60%	11.05%
Tax rate	22.10% - 22.30%	22.20%
Cost of debt	4.00% - 7.00%	5.50%
WACC	3.7% - 7.0%	5.4%

WACC

660.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.61	1.68

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.50%	15.60%

Tax rate	22.10%	22.30%
Debt/Equity ratio	5.32	5.32
Cost of debt	4.00%	7.00%

After-tax WACC	3.7%	7.0%


Selected WACC	5.4%

660.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 660.HK:

cost_of_equity (11.05%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.61) + 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.