8247.HK WACC - Weighted Average Cost of Capital

The WACC of Biosino Bio-Technology and Science Inc (8247.HK) is 7.8%.

The Cost of Equity of Biosino Bio-Technology and Science Inc (8247.HK) is 13.85%.

The Cost of Debt of Biosino Bio-Technology and Science Inc (8247.HK) is 5.75%.

	Range	Selected
Cost of equity	11.80% - 15.90%	13.85%
Tax rate	17.70% - 34.30%	26.00%
Cost of debt	4.50% - 7.00%	5.75%
WACC	6.7% - 8.8%	7.8%

WACC

8247.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.49	1.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.80%	15.90%

Tax rate	17.70%	34.30%
Debt/Equity ratio	1.69	1.69
Cost of debt	4.50%	7.00%

After-tax WACC	6.7%	8.8%


Selected WACC	7.8%

8247.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 8247.HK:

cost_of_equity (13.85%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.49) + 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.