067290.KQ WACC - Weighted Average Cost of Capital
The WACC of JW Shinyak Corp (067290.KQ) is 6.9%.
| Range | Selected | |
| Cost of equity | 6.2% - 8.5% | 7.35% |
| Tax rate | 10.1% - 29.9% | 20% |
| Cost of debt | 4.3% - 6.0% | 5.15% |
| 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 | 0.53 | 0.64 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 8.5% |
| Tax rate | 10.1% | 29.9% |
| Debt/Equity ratio | 0.16 | 0.16 |
| Cost of debt | 4.3% | 6.0% |
| After-tax WACC | 5.9% | 7.9% |
| Selected WACC | 6.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 067290.KQ | JW Shinyak Corp | 0.16 | 0.51 | 0.45 |
| 000220.KS | Yuyu Pharma Inc | 0.38 | 0.3 | 0.22 |
| 000520.KS | Samil Pharmaceutical Co Ltd | 0.57 | 0.81 | 0.54 |
| 002720.KS | Kukje Pharma Co Ltd | 0.31 | 0.22 | 0.18 |
| 004310.KS | Hyundai Pharmaceutical Co Ltd | 0.45 | 0.02 | 0.02 |
| 004720.KS | Wooridul Pharmaceutical Ltd | 0.54 | 0.57 | 0.38 |
| 063160.KS | CKD Bio Corp | 1.07 | 0.43 | 0.22 |
| 067080.KQ | Dae Hwa Pharm Co Ltd | 0.36 | 1.47 | 1.12 |
| 200670.KQ | Humedix Co Ltd | 0.01 | 0.55 | 0.55 |
| 260660.KQ | Korea Arlico Pharm Co Ltd | 0.27 | 0.37 | 0.3 |
| Low | High | |
| Unlevered beta | 0.27 | 0.41 |
| Relevered beta | 0.3 | 0.46 |
| Adjusted relevered beta | 0.53 | 0.64 |
067290.KQ'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 067290.KQ:
cost_of_equity (7.35%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.53) + 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.