688278.SS WACC - Weighted Average Cost of Capital
The WACC of Xiamen Amoytop Biotech Co Ltd (688278.SS) is 10.2%.
| Range | Selected | |
| Cost of equity | 8.8% - 11.6% | 10.2% |
| Tax rate | 14.8% - 16.0% | 15.4% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.8% - 11.5% | 10.2% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1 | 1.11 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.8% | 11.6% |
| Tax rate | 14.8% | 16.0% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.8% | 11.5% |
| Selected WACC | 10.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 688278.SS | Xiamen Amoytop Biotech Co Ltd | 0 | 0.49 | 0.49 |
| 2616.HK | CStone Pharmaceuticals | 0.1 | 1.34 | 1.24 |
| 300406.SZ | Beijing Strong Biotechnologies Inc | 0.15 | 1.53 | 1.36 |
| 300685.SZ | Amoy Diagnostics Co Ltd | 0.01 | 1.41 | 1.4 |
| 600645.SS | Vcanbio Cell & Gene Engineering Corp Ltd | 0.01 | 1.02 | 1.01 |
| 603387.SS | Getein Biotech Inc | 0.16 | 1.25 | 1.1 |
| 688166.SS | BrightGene Bio-Medical Technology Co Ltd | 0.11 | 1.6 | 1.47 |
| 688198.SS | Beijing Balance Medical Technology Co Ltd | 0 | 0.74 | 0.74 |
| 688298.SS | Zhejiang Orient Gene Biotech Co Ltd | 0.1 | 1.09 | 1 |
| 688336.SS | Sunshine Guojian Pharmaceutical Shanghai Co Ltd | 0 | 0.92 | 0.92 |
| Low | High | |
| Unlevered beta | 1.01 | 1.16 |
| Relevered beta | 1 | 1.16 |
| Adjusted relevered beta | 1 | 1.11 |
688278.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 688278.SS:
cost_of_equity (10.20%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1) + 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.