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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.
China Biotech Services HoldingsHKSE:08037 -1.54%19 WACC % is 6.35% as of Jul. 25, 2026, which is 4% above its 10-year median of 6.09. GuruFocus rates HKSE:08037 with a GF Score™ of 19/100 and a GF Value™ of HK$0.27 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 217 Medical Diagnostics & Research companies, China Biotech Services Holdings ranks better than 68.2% on this metric.
As of today (2026-07-25), China Biotech Services Holdings's weighted average cost of capital is 6.35%%. China Biotech Services Holdings's ROIC % is -10.21% (calculated using TTM income statement data).
China Biotech Services Holdings 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.
China Biotech Services Holdings (HKSE:08037) 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, China Biotech Services Holdings's weighted average cost of capital is 6.35%%. China Biotech Services Holdings's ROIC % is -10.21% (calculated using TTM income statement data).
China Biotech Services Holdings 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.
Related Terms
China Biotech Services Holdings WACC % Historical Data
* 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 Diagnostics & Research subindustry, China Biotech Services Holdings'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.
China Biotech Services Holdings WACC % vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, China Biotech Services Holdings's WACC % distribution charts can be found below:
* The bar in red indicates where China Biotech Services Holdings's WACC % falls into.
China Biotech Services Holdings WACC % Calculation
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, China Biotech Services Holdings's market capitalization (E) is HK$619.964 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 Dec. 2025, China Biotech Services Holdings's latest one-year semi-annual average Book Value of Debt (D) is HK$265.3883 Mil.
a) weight of equity = E / (E + D) = 619.964 / (619.964 + 265.3883) = 0.7002
b) weight of debt = D / (E + D) = 265.3883 / (619.964 + 265.3883) = 0.2998
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 4.681%. 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. China Biotech Services Holdings's beta is 0.2122.
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 = 4.681% + 0.2122 * 6% = 5.9542%
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 Dec. 2025, China Biotech Services Holdings's interest expense (positive number) was HK$19.473 Mil. Its total Book Value of Debt (D) is HK$265.3883 Mil.
Cost of Debt = 19.473 / 265.3883 = 7.3376%.
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 = -0.856 / -81.697 = 1.05%.
* 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.
China Biotech Services Holdings (HKSE:08037) has a WACC % of 6.35% as of Jul. 25, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on China Biotech Services Holdings and its competitors. This is near median its historical median of 6.09. According to the industry distribution chart, China Biotech Services Holdings ranks #69 out of 217 companies in the Medical Diagnostics & Research industry, placing it in the top 31.8%.
Is China Biotech Services Holdings' WACC % too high?
China Biotech Services Holdings' current WACC % of 6.35% is near median its 10-year median of 6.09. The Medical Diagnostics & Research industry median WACC % is 8.97. China Biotech Services Holdings' value of 6.35% is 29.2% below this industry median. Based on the distribution chart, China Biotech Services Holdings ranks #69 out of 217 companies in the Medical Diagnostics & Research industry, which is above the industry midpoint. Overall, China Biotech Services Holdings has a GF Score™ of 19/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Biotech Services Holdings' WACC % compare to TMO and DHR?
According to the Medical Diagnostics & Research industry distribution chart, China Biotech Services Holdings ranks #69 out of 217 companies for WACC %. This puts China Biotech Services Holdings in the upper half of its industry. The industry median WACC % is 8.97. China Biotech Services Holdings' value of 6.35% is 29.2% below this benchmark. While the company's 10-year median is 6.09 vs. the industry median of 8.97, China Biotech Services Holdings has consistently been below 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 Medical Diagnostics & Research company?
The median WACC % among Medical Diagnostics & Research companies is 8.97, based on 217 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. China Biotech Services Holdings's current WACC % of 6.35% is 29.2% below 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 China Biotech Services Holdings and its competitors. For the Medical Diagnostics & Research industry, the median WACC % is 8.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Biotech Services Holdings's current WACC % is 6.35%, which is near median its own 10-year median of 6.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Biotech Services Holdings stock overvalued right now?
Based on GuruFocus' analysis, China Biotech Services Holdings (HKSE:08037) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.27, compared to a current price of HK$0.64 — trading 137% above its estimated fair value. The current WACC % is 6.35%, which is near median its 10-year median of 6.09 and 29.2% below the Medical Diagnostics & Research industry median of 8.97. China Biotech Services Holdings' overall GF Score™ is 19/100 with 6 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 China Biotech Services Holdings (HKSE:08037), the current WACC % is 6.35% as of Jul. 25, 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 China Biotech Services Holdings (HKSE:08037) Overvalued in 2026?
Based on GuruFocus' analysis, China Biotech Services Holdings stock appears to be overvalued.
The current stock price of HK$0.64 is trading 137% above its estimated GF Value™ of HK$0.27.
GuruFocus considers China Biotech Services Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:08037:
WACC %: 6.35% (near median its 10-year median of 6.09)
GF Value™: HK$0.27 vs. price of HK$0.64 (137% above fair value)
Industry Position: 29.2% below the Medical Diagnostics & Research median (#69 of 217)
No single metric tells the full story. See the HKSE:08037 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Biotech Services Holdings Business Description
China Biotech Services Holdings Ltd is an investment holding company. It operates through five segments: Pharmaceutical Products, Medical and Health-Related Services, Immunotherapy, Insurance brokerage, BNCT, and Others. It derives prime revenue from the Medical & health-related services segment, which involves the provision of medical laboratory testing & health check services. The group has a business presence in Hong Kong & the PRC, of which key revenue is generated from Hong Kong. Immunotherapy-provision of tumor immune cell therapy & health management services. Pharmaceutical products-sale & distribution of health-related & pharmaceutical products. Insurance brokerage services. BNCT-provision of boron neutron capture therapy treatment services, & Others-provision of logistic services.
19GF Score
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