688277.SS WACC - Weighted Average Cost of Capital
The WACC of Tinavi Medical Technologies Co Ltd (688277.SS) is 9.5%.
| Range | Selected | |
| Cost of equity | 8.5% - 11.0% | 9.75% |
| Tax rate | 20.9% - 21.3% | 21.1% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.3% - 10.7% | 9.5% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.95 | 1.02 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.5% | 11.0% |
| Tax rate | 20.9% | 21.3% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.3% | 10.7% |
| Selected WACC | 9.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 688277.SS | Tinavi Medical Technologies Co Ltd | 0.04 | 1.88 | 1.83 |
| 002432.SZ | Andon Health Co Ltd | 0.18 | 0.98 | 0.85 |
| 1302.HK | LifeTech Scientific Corp | 0.08 | 1.05 | 0.98 |
| 1789.HK | AK Medical Holdings Ltd | 0.02 | 1.05 | 1.03 |
| 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 |
| 603301.SS | Zhende Medical Co Ltd | 0.11 | 1 | 0.92 |
| 688301.SS | iRay Technology Co Ltd | 0.2 | 1.44 | 1.24 |
| 688389.SS | Shenzhen Lifotronic Technology Co Ltd | 0.11 | 1.49 | 1.38 |
| 688617.SS | APT Medical Inc | 0 | 0.6 | 0.6 |
| Low | High | |
| Unlevered beta | 0.89 | 1 |
| Relevered beta | 0.93 | 1.03 |
| Adjusted relevered beta | 0.95 | 1.02 |
688277.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 688277.SS:
cost_of_equity (9.75%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.95) + 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.