8247.HK WACC - Weighted Average Cost of Capital

The WACC of Biosino Bio-Technology and Science Inc (8247.HK) is 8.1%.

The Cost of Equity of Biosino Bio-Technology and Science Inc (8247.HK) is 15.30%.

The Cost of Debt of Biosino Bio-Technology and Science Inc (8247.HK) is 5.85%.

	Range	Selected
Cost of equity	12.60% - 18.00%	15.30%
Tax rate	17.70% - 34.30%	26.00%
Cost of debt	4.70% - 7.00%	5.85%
WACC	6.9% - 9.3%	8.1%

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	1.62	2.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.60%	18.00%

Tax rate	17.70%	34.30%
Debt/Equity ratio	1.89	1.89
Cost of debt	4.70%	7.00%

After-tax WACC	6.9%	9.3%


Selected WACC	8.1%

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 (15.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.62) + 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.