033270.KS WACC - Weighted Average Cost of Capital
The WACC of Korea United Pharm Inc (033270.KS) is 8.0%.
| Range | Selected | |
| Cost of equity | 7.2% - 9.2% | 8.2% |
| Tax rate | 23.1% - 26.2% | 24.65% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.0% - 8.9% | 8.0% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.7 | 0.75 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.2% | 9.2% |
| Tax rate | 23.1% | 26.2% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.0% | 8.9% |
| Selected WACC | 8.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 033270.KS | Korea United Pharm Inc | 0.05 | 0.57 | 0.55 |
| 000020.KS | Dongwha Pharm Co Ltd | 0.56 | 0.55 | 0.39 |
| 000250.KQ | Sam Chun Dang Pharm Co Ltd | 0.01 | 0.82 | 0.81 |
| 003520.KS | Yungjin Pharm Co Ltd | 0.16 | 0.66 | 0.59 |
| 005500.KS | Samjin Pharmaceutical Co Ltd | 0.5 | 0.64 | 0.47 |
| 007570.KS | Ilyang Pharmaceutical Co Ltd | 0.43 | 0.68 | 0.51 |
| 009420.KS | Hanall Biopharma Co Ltd | 0 | 0.64 | 0.64 |
| 016580.KS | Whanin Pharm Co Ltd | 0 | 0.34 | 0.34 |
| 053030.KQ | Binex Co Ltd | 0.12 | 1.19 | 1.09 |
| 058820.KQ | CMG Pharmaceutical Co Ltd | 0.26 | 0.82 | 0.69 |
| Low | High | |
| Unlevered beta | 0.54 | 0.61 |
| Relevered beta | 0.55 | 0.63 |
| Adjusted relevered beta | 0.7 | 0.75 |
033270.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 033270.KS:
cost_of_equity (8.20%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.7) + 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.