070300.KQ
XCure Corp
Price:  
4,510 
KRW
Volume:  
35,731
Korea, Republic of | Technology Hardware, Storage & Peripherals

070300.KQ WACC - Weighted Average Cost of Capital

The WACC of XCure Corp (070300.KQ) is 6.8%.

The Cost of Equity of XCure Corp (070300.KQ) is 6.7%.
The Cost of Debt of XCure Corp (070300.KQ) is 8.65%.

RangeSelected
Cost of equity5.6% - 7.8%6.7%
Tax rate1.7% - 2.3%2%
Cost of debt7.0% - 10.3%8.65%
WACC5.7% - 8.0%6.8%
WACC

070300.KQ WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.440.54
Additional risk adjustments0.0%0.5%
Cost of equity5.6%7.8%
Tax rate1.7%2.3%
Debt/Equity ratio
0.080.08
Cost of debt7.0%10.3%
After-tax WACC5.7%8.0%
Selected WACC6.8%

070300.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 070300.KQ:

cost_of_equity (6.70%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.44) + 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.