002620.KS
Jeil Pharma Holdings Inc
Price:  
8,820 
KRW
Volume:  
12,946
Korea, Republic of | Pharmaceuticals

002620.KS WACC - Weighted Average Cost of Capital

The WACC of Jeil Pharma Holdings Inc (002620.KS) is 6.7%.

The Cost of Equity of Jeil Pharma Holdings Inc (002620.KS) is 9.1%.
The Cost of Debt of Jeil Pharma Holdings Inc (002620.KS) is 5.7%.

RangeSelected
Cost of equity7.1% - 11.1%9.1%
Tax rate6.8% - 25.2%16%
Cost of debt4.4% - 7.0%5.7%
WACC5.5% - 8.0%6.7%
WACC

002620.KS WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.691.03
Additional risk adjustments0.0%0.5%
Cost of equity7.1%11.1%
Tax rate6.8%25.2%
Debt/Equity ratio
1.141.14
Cost of debt4.4%7.0%
After-tax WACC5.5%8.0%
Selected WACC6.7%

002620.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 002620.KS:

cost_of_equity (9.10%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.69) + 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.