919.HK WACC - Weighted Average Cost of Capital
The WACC of Modern Healthcare Technology Holdings Ltd (919.HK) is 8.7%.
| Range | Selected | |
| Cost of equity | 5.3% - 8.5% | 6.9% |
| Tax rate | 7.9% - 10.0% | 8.95% |
| Cost of debt | 4.1% - 19.9% | 12% |
| WACC | 4.6% - 12.8% | 8.7% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.33 | 0.59 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 5.3% | 8.5% |
| Tax rate | 7.9% | 10.0% |
| Debt/Equity ratio | 0.84 | 0.84 |
| Cost of debt | 4.1% | 19.9% |
| After-tax WACC | 4.6% | 12.8% |
| Selected WACC | 8.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 919.HK | Modern Healthcare Technology Holdings Ltd | 0.84 | -0.34 | -0.19 |
| 1827.HK | Miricor Enterprises Holdings Ltd | 0.19 | -0.08 | -0.06 |
| 1830.HK | Perfect Shape Medical Ltd | 0.12 | 0.7 | 0.63 |
| 2700.HK | Green International Holdings Ltd | 0.1 | -0.02 | -0.01 |
| 79.HK | Century Legend (Holdings) Ltd | 3.27 | 0.02 | 0 |
| 8181.HK | Shi Shi Services Ltd | 0.09 | -0.23 | -0.22 |
| 8296.HK | Sino-Life Group Ltd | 0.81 | 0.57 | 0.33 |
| 8483.HK | Max Sight Group Holdings Ltd | 0.11 | 0.34 | 0.31 |
| 8603.HK | Fameglow Holdings Ltd | 0.09 | 0.37 | 0.35 |
| 922.HK | Anxian Yuan China Holdings Ltd | 0.05 | 0.16 | 0.16 |
| Low | High | |
| Unlevered beta | 0 | 0.22 |
| Relevered beta | 0 | 0.39 |
| Adjusted relevered beta | 0.33 | 0.59 |
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 (6.90%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.33) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.