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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Jinhai Medical TechnologyHKSE:02225 +0.54%61 WACC % is 7.59% as of Sep. 10, 2026, which is 87% above its 10-year median of 4.06. GuruFocus rates HKSE:02225 with a GF Score™ of 61/100 and a GF Value™ of HK$1.41 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 559 Conglomerates companies, Jinhai Medical Technology ranks worse than 55.46% on this metric.
As of today (2026-09-10), Jinhai Medical Technology's weighted average cost of capital is 7.59%%. Jinhai Medical Technology's ROIC % is -26.22% (calculated using TTM income statement data).
Jinhai Medical Technology earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
Jinhai Medical Technology (HKSE:02225) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Jinhai Medical Technology's weighted average cost of capital is 7.59%%. Jinhai Medical Technology's ROIC % is -26.22% (calculated using TTM income statement data).
Jinhai Medical Technology earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Conglomerates subindustry, Jinhai Medical Technology's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Jinhai Medical Technology WACC % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Jinhai Medical Technology's WACC % distribution charts can be found below:
* The bar in red indicates where Jinhai Medical Technology's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Jinhai Medical Technology's market capitalization (E) is HK$34437.900 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Jun. 2026, Jinhai Medical Technology's latest one-year semi-annual average Book Value of Debt (D) is HK$88.7167 Mil.
a) weight of equity = E / (E + D) = 34437.900 / (34437.900 + 88.7167) = 0.9974
b) weight of debt = D / (E + D) = 88.7167 / (34437.900 + 88.7167) = 0.0026
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.967%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Jinhai Medical Technology's beta is 0.4396.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.967% + 0.4396 * 6% = 7.6046%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
As of Jun. 2026, Jinhai Medical Technology's interest expense (positive number) was HK$3.322 Mil. Its total Book Value of Debt (D) is HK$88.7167 Mil.
Cost of Debt = 3.322 / 88.7167 = 3.7445%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 4.787 / -57.063 = -8.39%, which is less than 0%. Therefore it's set to 0%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Jinhai Medical Technology (HKSE:02225) has a WACC % of 7.59% as of Sep. 10, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Jinhai Medical Technology and its competitors. This is 87% above median its historical median of 4.06. According to the industry distribution chart, Jinhai Medical Technology ranks #310 out of 559 companies in the Conglomerates industry, placing it in the top 55.5%.
Is Jinhai Medical Technology's WACC % too high?
Jinhai Medical Technology's current WACC % of 7.59% is 87% above median its 10-year median of 4.06. The Conglomerates industry median WACC % is 6.76. Jinhai Medical Technology's value of 7.59% is 12.3% above this industry median. Based on the distribution chart, Jinhai Medical Technology ranks #310 out of 559 companies in the Conglomerates industry, which is below the industry midpoint. Overall, Jinhai Medical Technology has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Jinhai Medical Technology's WACC % compare to RHI and KFY?
According to the Conglomerates industry distribution chart, Jinhai Medical Technology ranks #310 out of 559 companies for WACC %. This places Jinhai Medical Technology in the lower half of its industry. The industry median WACC % is 6.76. Jinhai Medical Technology's value of 7.59% is 12.3% above this benchmark. While the company's 10-year median is 4.06 vs. the industry median of 6.76, Jinhai Medical Technology has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Conglomerates company?
The median WACC % among Conglomerates companies is 6.76, based on 559 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Jinhai Medical Technology's current WACC % of 7.59% is 12.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Jinhai Medical Technology and its competitors. For the Conglomerates industry, the median WACC % is 6.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jinhai Medical Technology's current WACC % is 7.59%, which is 87% above median its own 10-year median of 4.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jinhai Medical Technology stock overvalued right now?
Based on GuruFocus' analysis, Jinhai Medical Technology (HKSE:02225) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$1.41, compared to a current price of HK$6.51 — trading 361.7% above its estimated fair value. The current WACC % is 7.59%, which is 87% above median its 10-year median of 4.06 and 12.3% above the Conglomerates industry median of 6.76. Jinhai Medical Technology's overall GF Score™ is 61/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Jinhai Medical Technology (HKSE:02225), the current WACC % is 7.59% as of Sep. 10, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Jinhai Medical Technology (HKSE:02225) Overvalued in 2026?
Based on GuruFocus' analysis, Jinhai Medical Technology stock appears to be overvalued.
The current stock price of HK$6.51 is trading 361.7% above its estimated GF Value™ of HK$1.41.
GuruFocus considers Jinhai Medical Technology to be Significantly Overvalued.
Key valuation signals for HKSE:02225:
WACC %: 7.59% (87% above median its 10-year median of 4.06)
GF Value™: HK$1.41 vs. price of HK$6.51 (361.7% above fair value)
Industry Position: 12.3% above the Conglomerates median (#310 of 559)
No single metric tells the full story. See the HKSE:02225 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Jinhai Medical Technology Ltd is an investment holding company. Along with its subsidiaries, it is principally engaged in providing medical equipment in China and manpower outsourcing and ancillary services to building and construction contractors in Singapore. The group also provides IT services, construction ancillary services (which comprise warehousing, cleaning, and building maintenance works), and dormitory services in Singapore. It generates maximum revenue from the sale of minimally invasive surgery solutions, medical products, and related services in the People's Republic of China.
61GF Score
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