005500.KS WACC - Weighted Average Cost of Capital
The WACC of Samjin Pharmaceutical Co Ltd (005500.KS) is 6.9%.
| Range | Selected | |
| Cost of equity | 7.0% - 9.4% | 8.2% |
| Tax rate | 14.3% - 16.5% | 15.4% |
| Cost of debt | 4.0% - 5.0% | 4.5% |
| WACC | 5.9% - 7.9% | 6.9% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.67 | 0.78 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.0% | 9.4% |
| Tax rate | 14.3% | 16.5% |
| Debt/Equity ratio | 0.43 | 0.43 |
| Cost of debt | 4.0% | 5.0% |
| After-tax WACC | 5.9% | 7.9% |
| Selected WACC | 6.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 005500.KS | Samjin Pharmaceutical Co Ltd | 0.43 | 0.59 | 0.44 |
| 003220.KS | Daewon Pharmaceutical Co Ltd | 0.62 | 0.26 | 0.17 |
| 011040.KQ | Kyungdong Pharm | 0.2 | 0.38 | 0.32 |
| 016580.KS | Whanin Pharm Co Ltd | 0 | 0.41 | 0.41 |
| 061250.KQ | Hwail Pharm Co Ltd | 0.04 | 0.61 | 0.59 |
| 066700.KQ | Theragen Etex Co Ltd | 0.33 | 0.8 | 0.62 |
| 067080.KQ | Dae Hwa Pharm Co Ltd | 0.34 | 1.21 | 0.94 |
| 102940.KQ | Kolon Life Science Inc | 0.3 | 0.9 | 0.72 |
| 214390.KS | Kyongbo Pharmaceutical Co Ltd | 0.76 | 0.1 | 0.06 |
| 234080.KS | Jw Life Science Corp | 0.34 | 0.24 | 0.19 |
| Low | High | |
| Unlevered beta | 0.38 | 0.5 |
| Relevered beta | 0.51 | 0.67 |
| Adjusted relevered beta | 0.67 | 0.78 |
005500.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 005500.KS:
cost_of_equity (8.20%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.67) + 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.