003000.KS WACC - Weighted Average Cost of Capital
The WACC of Bukwang Pharm Co Ltd (003000.KS) is 10.1%.
| Range | Selected | |
| Cost of equity | 6.1% - 9.4% | 7.75% |
| Tax rate | 25.0% - 25.0% | 25% |
| Cost of debt | 14.9% - 34.5% | 24.7% |
| WACC | 7.2% - 13.0% | 10.1% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.52 | 0.77 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 9.4% |
| Tax rate | 25.0% | 25.0% |
| Debt/Equity ratio | 0.28 | 0.28 |
| Cost of debt | 14.9% | 34.5% |
| After-tax WACC | 7.2% | 13.0% |
| Selected WACC | 10.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 003000.KS | Bukwang Pharm Co Ltd | 0.28 | 1.18 | 0.97 |
| 000250.KQ | Sam Chun Dang Pharm Co Ltd | 0.01 | 0.84 | 0.83 |
| 002210.KS | Dongsung Pharmaceutical Co Ltd | 0.72 | -0.24 | -0.16 |
| 003520.KS | Yungjin Pharm Co Ltd | 0.16 | 0.74 | 0.66 |
| 009420.KS | Hanall Biopharma Co Ltd | 0 | 0.63 | 0.63 |
| 039200.KQ | Oscotec Inc | 0.01 | 0.49 | 0.49 |
| 063160.KS | CKD Bio Corp | 1.05 | 0.43 | 0.24 |
| 086450.KQ | Dongkook Pharmaceutical Co Ltd | 0.1 | 0.19 | 0.18 |
| 140410.KQ | Mezzion Pharma Co Ltd | 0 | 0.18 | 0.18 |
| 234080.KS | Jw Life Science Corp | 0.36 | 0.28 | 0.22 |
| Low | High | |
| Unlevered beta | 0.23 | 0.55 |
| Relevered beta | 0.28 | 0.66 |
| Adjusted relevered beta | 0.52 | 0.77 |
003000.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 003000.KS:
cost_of_equity (7.75%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.52) + 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.