009420.KS
Hanall Biopharma Co Ltd
Price:  
27,200.00 
KRW
Volume:  
170,196.00
Korea, Republic of | Pharmaceuticals
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

009420.KS WACC - Weighted Average Cost of Capital

The WACC of Hanall Biopharma Co Ltd (009420.KS) is 7.2%.

The Cost of Equity of Hanall Biopharma Co Ltd (009420.KS) is 7.20%.
The Cost of Debt of Hanall Biopharma Co Ltd (009420.KS) is 5.50%.

Range Selected
Cost of equity 5.70% - 8.70% 7.20%
Tax rate 6.90% - 40.50% 23.70%
Cost of debt 4.00% - 7.00% 5.50%
WACC 5.7% - 8.6% 7.2%
WACC

009420.KS WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.46 0.67
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.70% 8.70%
Tax rate 6.90% 40.50%
Debt/Equity ratio 0 0
Cost of debt 4.00% 7.00%
After-tax WACC 5.7% 8.6%
Selected WACC 7.2%

009420.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 009420.KS:

cost_of_equity (7.20%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.46) + 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.