003520.KS
Yungjin Pharm Co Ltd
Price:  
2,005.00 
KRW
Volume:  
92,783.00
Korea, Republic of | Pharmaceuticals
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003520.KS WACC - Weighted Average Cost of Capital

The WACC of Yungjin Pharm Co Ltd (003520.KS) is 8.1%.

The Cost of Equity of Yungjin Pharm Co Ltd (003520.KS) is 8.95%.
The Cost of Debt of Yungjin Pharm Co Ltd (003520.KS) is 4.25%.

Range Selected
Cost of equity 7.70% - 10.20% 8.95%
Tax rate 12.40% - 33.80% 23.10%
Cost of debt 4.00% - 4.50% 4.25%
WACC 7.1% - 9.1% 8.1%
WACC

003520.KS WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.79 0.9
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 10.20%
Tax rate 12.40% 33.80%
Debt/Equity ratio 0.17 0.17
Cost of debt 4.00% 4.50%
After-tax WACC 7.1% 9.1%
Selected WACC 8.1%

003520.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 003520.KS:

cost_of_equity (8.95%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.79) + 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.