919.HK WACC - Weighted Average Cost of Capital

The WACC of Modern Healthcare Technology Holdings Ltd (919.HK) is 5.2%.

The Cost of Equity of Modern Healthcare Technology Holdings Ltd (919.HK) is 5.50%.

The Cost of Debt of Modern Healthcare Technology Holdings Ltd (919.HK) is 5.50%.

	Range	Selected
Cost of equity	4.70% - 6.30%	5.50%
Tax rate	7.90% - 10.00%	8.95%
Cost of debt	5.10% - 5.90%	5.50%
WACC	4.7% - 5.7%	5.2%

WACC

919.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.3	0.35

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.70%	6.30%

Tax rate	7.90%	10.00%
Debt/Equity ratio	1.51	1.51
Cost of debt	5.10%	5.90%

After-tax WACC	4.7%	5.7%


Selected WACC	5.2%

919.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 919.HK:

cost_of_equity (5.50%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.3) + 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.