086060.KQ
GeneBioTech Co Ltd
Price:  
4,215.00 
KRW
Volume:  
10,875,697.00
Korea, Republic of | Biotechnology
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086060.KQ WACC - Weighted Average Cost of Capital

The WACC of GeneBioTech Co Ltd (086060.KQ) is 7.0%.

The Cost of Equity of GeneBioTech Co Ltd (086060.KQ) is 9.05%.
The Cost of Debt of GeneBioTech Co Ltd (086060.KQ) is 4.25%.

Range Selected
Cost of equity 7.80% - 10.30% 9.05%
Tax rate 21.20% - 30.80% 26.00%
Cost of debt 4.00% - 4.50% 4.25%
WACC 6.2% - 7.8% 7.0%
WACC

086060.KQ WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.81 0.92
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.80% 10.30%
Tax rate 21.20% 30.80%
Debt/Equity ratio 0.54 0.54
Cost of debt 4.00% 4.50%
After-tax WACC 6.2% 7.8%
Selected WACC 7.0%

086060.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 086060.KQ:

cost_of_equity (9.05%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.81) + 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.