928.HK
Life Healthcare Group Ltd
Price:  
0.03 
HKD
Volume:  
660,000.00
Hong Kong | Health Care Providers & Services
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928.HK WACC - Weighted Average Cost of Capital

The WACC of Life Healthcare Group Ltd (928.HK) is 8.3%.

The Cost of Equity of Life Healthcare Group Ltd (928.HK) is 8.45%.
The Cost of Debt of Life Healthcare Group Ltd (928.HK) is 8.00%.

Range Selected
Cost of equity 6.80% - 10.10% 8.45%
Tax rate 2.70% - 16.70% 9.70%
Cost of debt 4.00% - 12.00% 8.00%
WACC 6.5% - 10.1% 8.3%
WACC

928.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.65 0.89
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 10.10%
Tax rate 2.70% 16.70%
Debt/Equity ratio 0.1 0.1
Cost of debt 4.00% 12.00%
After-tax WACC 6.5% 10.1%
Selected WACC 8.3%

928.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 928.HK:

cost_of_equity (8.45%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.65) + 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.