688085.SS WACC - Weighted Average Cost of Capital
The WACC of Shanghai Sanyou Medical Co Ltd (688085.SS) is 9.8%.
| Range | Selected | |
| Cost of equity | 8.5% - 11.1% | 9.8% |
| Tax rate | 13.7% - 14.4% | 14.05% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.5% - 11.1% | 9.8% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.94 | 1.04 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.5% | 11.1% |
| Tax rate | 13.7% | 14.4% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.5% | 11.1% |
| Selected WACC | 9.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 688085.SS | Shanghai Sanyou Medical Co Ltd | 0 | 0.94 | 0.94 |
| 002432.SZ | Andon Health Co Ltd | 0.19 | 1.02 | 0.88 |
| 002932.SZ | Wuhan Easy Diagnosis Biomedicine Co Ltd | 0.02 | 1.13 | 1.11 |
| 1358.HK | PW Medtech Group Ltd | 0.01 | 0.18 | 0.18 |
| 1858.HK | Beijing Chunlizhengda Medical Instruments Co Ltd | 0 | -0.2 | -0.19 |
| 300273.SZ | Zhuhai Hokai Medical Instruments Co Ltd | 5.84 | 0.01 | 0 |
| 300314.SZ | Ningbo David Medical Device Co Ltd | 0 | 1.57 | 1.56 |
| 300318.SZ | Beijing Bohui Innovation Biotechnology Co Ltd | 0.27 | 1.22 | 0.99 |
| 300396.SZ | Dirui Industrial Co Ltd | 0.18 | 2 | 1.73 |
| 688108.SS | Sino Medical Sciences Technology Inc | 0.05 | 1.63 | 1.56 |
| Low | High | |
| Unlevered beta | 0.92 | 1.04 |
| Relevered beta | 0.91 | 1.06 |
| Adjusted relevered beta | 0.94 | 1.04 |
688085.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 688085.SS:
cost_of_equity (9.80%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.94) + 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.