688617.SS
APT Medical Inc
Price:  
406.04 
CNY
Volume:  
432,750
China | Health Care Equipment & Supplies

688617.SS WACC - Weighted Average Cost of Capital

The WACC of APT Medical Inc (688617.SS) is 9.6%.

The Cost of Equity of APT Medical Inc (688617.SS) is 9.6%.
The Cost of Debt of APT Medical Inc (688617.SS) is 5%.

RangeSelected
Cost of equity8.4% - 10.8%9.6%
Tax rate13.3% - 14.0%13.65%
Cost of debt5.0% - 5.0%5%
WACC8.4% - 10.8%9.6%
WACC

688617.SS WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta0.931
Additional risk adjustments0.0%0.5%
Cost of equity8.4%10.8%
Tax rate13.3%14.0%
Debt/Equity ratio
00
Cost of debt5.0%5.0%
After-tax WACC8.4%10.8%
Selected WACC9.6%

688617.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 688617.SS:

cost_of_equity (9.60%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.93) + 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.