919.HK WACC - Weighted Average Cost of Capital

The WACC of Modern Healthcare Technology Holdings Ltd (919.HK) is 6.4%.

The Cost of Equity of Modern Healthcare Technology Holdings Ltd (919.HK) is 7.80%.

The Cost of Debt of Modern Healthcare Technology Holdings Ltd (919.HK) is 5.25%.

	Range	Selected
Cost of equity	5.40% - 10.20%	7.80%
Tax rate	7.90% - 10.00%	8.95%
Cost of debt	4.60% - 5.90%	5.25%
WACC	4.9% - 8.0%	6.4%

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	0.34	0.84

Additional risk adjustments	0.5%	1.0%
Cost of equity	5.40%	10.20%

Tax rate	7.90%	10.00%
Debt/Equity ratio	0.84	0.84
Cost of debt	4.60%	5.90%

After-tax WACC	4.9%	8.0%


Selected WACC	6.4%

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 (7.80%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.34) + 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.