KETA.CN WACC - Weighted Average Cost of Capital

The WACC of TripSitter Clinic Ltd (KETA.CN) is 8.9%.

The Cost of Equity of TripSitter Clinic Ltd (KETA.CN) is 12.90%.

The Cost of Debt of TripSitter Clinic Ltd (KETA.CN) is 5.00%.

	Range	Selected
Cost of equity	1.50% - 24.30%	12.90%
Tax rate	25.90% - 26.50%	26.20%
Cost of debt	5.00% - 5.00%	5.00%
WACC	15.3% - 2.4%	8.9%

WACC

KETA.CN WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	-23.89	-23.89

Additional risk adjustments	143.0%	143.5%
Cost of equity	1.50%	24.30%

Tax rate	25.90%	26.50%
Debt/Equity ratio	0.78	0.78
Cost of debt	5.00%	5.00%

After-tax WACC	15.3%	2.4%


Selected WACC	8.9%

KETA.CN'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 KETA.CN:

cost_of_equity (12.90%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (-23.89) + risk_adjustments (143.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.