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As of today (2026-07-21), Guangzhou Kingmed Diagnostics Group Co's weighted average cost of capital is 15.48%%. Guangzhou Kingmed Diagnostics Group Co's ROIC % is 4.46% (calculated using TTM income statement data).
Guangzhou Kingmed Diagnostics Group Co 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.
Guangzhou Kingmed Diagnostics Group Co (SHSE:603882) 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, Guangzhou Kingmed Diagnostics Group Co's weighted average cost of capital is 15.48%%. Guangzhou Kingmed Diagnostics Group Co's ROIC % is 4.46% (calculated using TTM income statement data).
Guangzhou Kingmed Diagnostics Group Co 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 quarterly 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 quarterly average debt to get the simplified cost of debt.
Related Terms
Guangzhou Kingmed Diagnostics Group Co 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.
Guangzhou Kingmed Diagnostics Group Co WACC % Chart
Guangzhou Kingmed Diagnostics Group Co Annual Data
For the Diagnostics & Research subindustry, Guangzhou Kingmed Diagnostics Group Co'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.
Guangzhou Kingmed Diagnostics Group Co WACC % vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Guangzhou Kingmed Diagnostics Group Co's WACC % distribution charts can be found below:
* The bar in red indicates where Guangzhou Kingmed Diagnostics Group Co's WACC % falls into.
Guangzhou Kingmed Diagnostics Group Co 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, Guangzhou Kingmed Diagnostics Group Co's market capitalization (E) is ¥12373.630 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 quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Guangzhou Kingmed Diagnostics Group Co's latest one-year quarterly average Book Value of Debt (D) is ¥800.1722 Mil.
a) weight of equity = E / (E + D) = 12373.630 / (12373.630 + 800.1722) = 0.9393
b) weight of debt = D / (E + D) = 800.1722 / (12373.630 + 800.1722) = 0.0607
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 4.594%. 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. Guangzhou Kingmed Diagnostics Group Co's beta is 1.9629.
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 = 4.594% + 1.9629 * 6% = 16.3714%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, Guangzhou Kingmed Diagnostics Group Co's interest expense (positive number) was ¥13.876 Mil. Its total Book Value of Debt (D) is ¥800.1722 Mil.
Cost of Debt = 13.876 / 800.1722 = 1.7341%.
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 = 12.767 / -83.224 = -15.34%, 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.
Guangzhou Kingmed Diagnostics Group Co (SHSE:603882) has a WACC % of 15.48% as of Jul. 21, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Guangzhou Kingmed Diagnostics Group Co and its competitors. This is 90% above median its historical median of 8.14. Over the past decade, Guangzhou Kingmed Diagnostics Group Co's WACC % has ranged from 4.83 to 15.43. According to the industry distribution chart, Guangzhou Kingmed Diagnostics Group Co ranks #189 out of 217 companies in the Medical Diagnostics & Research industry, placing it in the top 87.1%.
Is Guangzhou Kingmed Diagnostics Group Co's WACC % too high?
Guangzhou Kingmed Diagnostics Group Co's current WACC % of 15.48% is 90% above median its 10-year median of 8.14. Over the past 10 years, this metric has ranged from a low of 4.83 to a high of 15.43. The Medical Diagnostics & Research industry median WACC % is 8.96. Guangzhou Kingmed Diagnostics Group Co's value of 15.48% is 72.8% above this industry median. Based on the distribution chart, Guangzhou Kingmed Diagnostics Group Co ranks #189 out of 217 companies in the Medical Diagnostics & Research industry, which is in the bottom quartile relative to peers. Overall, Guangzhou Kingmed Diagnostics Group Co has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Guangzhou Kingmed Diagnostics Group Co's WACC % compare to TMO and DHR?
According to the Medical Diagnostics & Research industry distribution chart, Guangzhou Kingmed Diagnostics Group Co ranks #189 out of 217 companies for WACC %. This places Guangzhou Kingmed Diagnostics Group Co in the lower half of its industry. The industry median WACC % is 8.96. Guangzhou Kingmed Diagnostics Group Co's value of 15.48% is 72.8% above this benchmark. Historically, Guangzhou Kingmed Diagnostics Group Co's own WACC % has ranged from 4.83 to 15.43 over the past decade. While the company's 10-year median is 8.14 vs. the industry median of 8.96, Guangzhou Kingmed Diagnostics Group Co 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 Medical Diagnostics & Research company?
The median WACC % among Medical Diagnostics & Research companies is 8.96, 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. Guangzhou Kingmed Diagnostics Group Co's current WACC % of 15.48% is 72.8% 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 Guangzhou Kingmed Diagnostics Group Co and its competitors. For the Medical Diagnostics & Research industry, the median WACC % is 8.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guangzhou Kingmed Diagnostics Group Co's current WACC % is 15.48%, which is 90% above median its own 10-year median of 8.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guangzhou Kingmed Diagnostics Group Co stock overvalued right now?
Based on GuruFocus' analysis, Guangzhou Kingmed Diagnostics Group Co (SHSE:603882) is currently considered Fairly Valued. The stock's GF Value™ is ¥27.91, compared to a current price of ¥26.71 — trading 4.3% below its estimated fair value. The current WACC % is 15.48%, which is 90% above median its 10-year median of 8.14 and 72.8% above the Medical Diagnostics & Research industry median of 8.96. Guangzhou Kingmed Diagnostics Group Co's overall GF Score™ is 74/100 with 7 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 Guangzhou Kingmed Diagnostics Group Co (SHSE:603882), the current WACC % is 15.48% as of Jul. 21, 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 Guangzhou Kingmed Diagnostics Group Co (SHSE:603882) Overvalued in 2026?
Based on GuruFocus' analysis, Guangzhou Kingmed Diagnostics Group Co stock appears to be undervalued.
The current stock price of ¥26.71 is trading 4.3% below its estimated GF Value™ of ¥27.91.
GuruFocus considers Guangzhou Kingmed Diagnostics Group Co to be Fairly Valued.
Key valuation signals for SHSE:603882:
WACC %: 15.48% (90% above median its 10-year median of 8.14)
GF Value™: ¥27.91 vs. price of ¥26.71 (4.3% below fair value)
Industry Position: 72.8% above the Medical Diagnostics & Research median (#189 of 217)
No single metric tells the full story. See the SHSE:603882 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guangzhou Kingmed Diagnostics Group Co Business Description
Founded in 1994, KingMed is the largest independent clinical laboratory in China. It was listed on the Shanghai Stock Exchange in 2017. As of 2024, KingMed has 50 centralized labs and provides over 4000 test items. Over 90% of its total revenue comes from clinical diagnostics. Furthermore, KingMed has been actively investing in its cold chain logistics. Its service network covers the most intensely populated areas in China.
74GF Score
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