000220.KS WACC - Weighted Average Cost of Capital
The WACC of Yuyu Pharma Inc (000220.KS) is 6.5%.
| Range | Selected | |
| Cost of equity | 6.0% - 8.7% | 7.35% |
| Tax rate | 10.9% - 23.7% | 17.3% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.3% - 7.7% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.51 | 0.67 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 8.7% |
| Tax rate | 10.9% | 23.7% |
| Debt/Equity ratio | 0.38 | 0.38 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.3% | 7.7% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 000220.KS | Yuyu Pharma Inc | 0.38 | 0.27 | 0.21 |
| 002720.KS | Kukje Pharma Co Ltd | 0.29 | 0.1 | 0.08 |
| 002800.KQ | Sinsin Pharmaceutical Co Ltd | 0.52 | 0.13 | 0.09 |
| 003120.KS | Ilsung Pharmaceutical Co Ltd | 0 | 0.61 | 0.61 |
| 004720.KS | Wooridul Pharmaceutical Ltd | 0.5 | 0.48 | 0.34 |
| 009300.KQ | Sam-A Pharm Co Ltd | 0.11 | 0.1 | 0.09 |
| 034940.KQ | ChoA Pharmaceutical Co Ltd | 0.76 | 0.3 | 0.19 |
| 041910.KQ | EstechPharma Co Ltd | 0.01 | 1.32 | 1.31 |
| 067080.KQ | Dae Hwa Pharm Co Ltd | 0.35 | 1.27 | 0.99 |
| 200670.KQ | Humedix Co Ltd | 0 | 0.47 | 0.46 |
| Low | High | |
| Unlevered beta | 0.2 | 0.39 |
| Relevered beta | 0.27 | 0.51 |
| Adjusted relevered beta | 0.51 | 0.67 |
000220.KS'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 000220.KS:
cost_of_equity (7.35%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.51) + 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.