114450.KQ
KPX Lifescience Co Ltd
Price:  
3,960 
KRW
Volume:  
9,911,613
Korea, Republic of | Life Sciences Tools & Services

114450.KQ WACC - Weighted Average Cost of Capital

The WACC of KPX Lifescience Co Ltd (114450.KQ) is 7.1%.

The Cost of Equity of KPX Lifescience Co Ltd (114450.KQ) is 7.3%.
The Cost of Debt of KPX Lifescience Co Ltd (114450.KQ) is 5.35%.

RangeSelected
Cost of equity6.0% - 8.6%7.3%
Tax rate5.0% - 13.6%9.3%
Cost of debt4.0% - 6.7%5.35%
WACC5.9% - 8.3%7.1%
WACC

114450.KQ WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.510.66
Additional risk adjustments0.0%0.5%
Cost of equity6.0%8.6%
Tax rate5.0%13.6%
Debt/Equity ratio
0.090.09
Cost of debt4.0%6.7%
After-tax WACC5.9%8.3%
Selected WACC7.1%

114450.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 114450.KQ:

cost_of_equity (7.30%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.51) + 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.