The WACC of APT Medical Inc (688617.SS) is 9.6%.
Range | Selected | |
Cost of equity | 8.4% - 10.8% | 9.6% |
Tax rate | 13.3% - 14.0% | 13.65% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 8.4% - 10.8% | 9.6% |
Category | Low | High |
Long-term bond rate | 2.7% | 3.2% |
Equity market risk premium | 6.1% | 7.1% |
Adjusted beta | 0.93 | 1 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.4% | 10.8% |
Tax rate | 13.3% | 14.0% |
Debt/Equity ratio | 0 | 0 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 8.4% | 10.8% |
Selected WACC | 9.6% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
688617.SS | APT Medical Inc | 0 | 0.65 | 0.65 |
002432.SZ | Andon Health Co Ltd | 0.19 | 1.02 | 0.88 |
1302.HK | LifeTech Scientific Corp | 0.08 | 1.07 | 1 |
1789.HK | AK Medical Holdings Ltd | 0.02 | 1.03 | 1.01 |
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 | 0.13 | 1.01 | 0.91 |
688277.SS | Tinavi Medical Technologies Co Ltd | 0.04 | 1.89 | 1.83 |
688301.SS | iRay Technology Co Ltd | 0.19 | 1.44 | 1.23 |
688389.SS | Shenzhen Lifotronic Technology Co Ltd | 0.11 | 1.5 | 1.37 |
Low | High | |
Unlevered beta | 0.9 | 1 |
Relevered beta | 0.9 | 1 |
Adjusted relevered beta | 0.93 | 1 |
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.