BIMI WACC - Weighted Average Cost of Capital
The WACC of BOQI International Medical Inc (BIMI) is 7.1%.
| Range | Selected | |
| Cost of equity | 24.9% - 170.1% | 97.5% |
| Tax rate | 0.0% - 0.1% | 0.05% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 7.0% - 7.2% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 4.57 | 29.5 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 24.9% | 170.1% |
| Tax rate | 0.0% | 0.1% |
| Debt/Equity ratio | 675.89 | 675.89 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 7.0% | 7.2% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BIMI | BOQI International Medical Inc | 675.89 | 4.5 | 0.01 |
| ANCSQ | American Consumers Inc | 1.44 | 0.94 | 0.39 |
| CJJD | China Jo-Jo Drugstores Inc | 5.17 | -0.3 | -0.05 |
| CRRX.TO | CareRx Corp | 0.48 | 0.2 | 0.13 |
| KR | Kroger Co | 0.39 | 0.07 | 0.05 |
| NGMC | Next Generation Management Corp | 0.24 | 0.19 | 0.15 |
| NWC.TO | North West Company Inc | 0.15 | -0.26 | -0.22 |
| OG.V | Organic Garage Ltd | 3.49 | 1.01 | 0.23 |
| RAD | Rite Aid Corp | 80.09 | 0.85 | 0.01 |
| RUM.V | Rocky Mountain Liquor Inc | 2.72 | 0.01 | 0 |
| WBA | Walgreens Boots Alliance Inc | 1.08 | 0.18 | 0.08 |
| Low | High | |
| Unlevered beta | 0.01 | 0.08 |
| Relevered beta | 6.33 | 43.54 |
| Adjusted relevered beta | 4.57 | 29.5 |
BIMI'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 BIMI:
cost_of_equity (97.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (4.57) + 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.