CCM
Concord Medical Services Holdings Ltd
Price:  
6.75 
USD
Volume:  
11,222.00
China | Health Care Providers & Services
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CCM WACC - Weighted Average Cost of Capital

The WACC of Concord Medical Services Holdings Ltd (CCM) is 5.9%.

The Cost of Equity of Concord Medical Services Holdings Ltd (CCM) is 6.40%.
The Cost of Debt of Concord Medical Services Holdings Ltd (CCM) is 6.45%.

Range Selected
Cost of equity 5.40% - 7.40% 6.40%
Tax rate 8.50% - 9.10% 8.80%
Cost of debt 5.90% - 7.00% 6.45%
WACC 5.4% - 6.4% 5.9%
WACC

CCM WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.33 0.45
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.40% 7.40%
Tax rate 8.50% 9.10%
Debt/Equity ratio 13.84 13.84
Cost of debt 5.90% 7.00%
After-tax WACC 5.4% 6.4%
Selected WACC 5.9%

CCM'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 CCM:

cost_of_equity (6.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.33) + 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.