000250.KQ WACC - Weighted Average Cost of Capital
The WACC of Sam Chun Dang Pharm Co Ltd (000250.KQ) is 7.2%.
| Range | Selected | |
| Cost of equity | 6.0% - 8.5% | 7.25% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.0% - 8.4% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.51 | 0.64 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 8.5% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.0% | 8.4% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 000250.KQ | Sam Chun Dang Pharm Co Ltd | 0.01 | 0.58 | 0.58 |
| 003000.KS | Bukwang Pharm Co Ltd | 0.22 | 0.92 | 0.79 |
| 003520.KS | Yungjin Pharm Co Ltd | 0.15 | 0.56 | 0.5 |
| 009420.KS | Hanall Biopharma Co Ltd | 0 | 0.43 | 0.43 |
| 033270.KS | Korea United Pharm Inc | 0.04 | 0.58 | 0.56 |
| 039200.KQ | Oscotec Inc | 0 | 0.28 | 0.28 |
| 063160.KS | CKD Bio Corp | 0.99 | 0.35 | 0.2 |
| 086450.KQ | Dongkook Pharmaceutical Co Ltd | 0.1 | 0.25 | 0.24 |
| 214390.KS | Kyongbo Pharmaceutical Co Ltd | 0.74 | 0.09 | 0.06 |
| 234080.KS | Jw Life Science Corp | 0.34 | 0.26 | 0.21 |
| Low | High | |
| Unlevered beta | 0.26 | 0.46 |
| Relevered beta | 0.27 | 0.46 |
| Adjusted relevered beta | 0.51 | 0.64 |
000250.KQ'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 000250.KQ:
cost_of_equity (7.25%) = 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.