690.HK WACC - Weighted Average Cost of Capital

The WACC of Uni-Bio Science Group Ltd (690.HK) is 8.1%.

The Cost of Equity of Uni-Bio Science Group Ltd (690.HK) is 8.65%.

The Cost of Debt of Uni-Bio Science Group Ltd (690.HK) is 5.45%.

	Range	Selected
Cost of equity	6.70% - 10.60%	8.65%
Tax rate	4.80% - 7.70%	6.25%
Cost of debt	4.00% - 6.90%	5.45%
WACC	6.3% - 9.9%	8.1%

WACC

690.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.65	0.96

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.70%	10.60%

Tax rate	4.80%	7.70%
Debt/Equity ratio	0.17	0.17
Cost of debt	4.00%	6.90%

After-tax WACC	6.3%	9.9%


Selected WACC	8.1%

690.HK'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 690.HK:

cost_of_equity (8.65%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.65) + 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.