114450.KQ WACC - Weighted Average Cost of Capital
The WACC of KPX Lifescience Co Ltd (114450.KQ) is 7.1%.
| Range | Selected | |
| Cost of equity | 6.0% - 8.6% | 7.3% |
| Tax rate | 5.0% - 13.6% | 9.3% |
| Cost of debt | 4.0% - 6.7% | 5.35% |
| WACC | 5.9% - 8.3% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.51 | 0.66 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 8.6% |
| Tax rate | 5.0% | 13.6% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 4.0% | 6.7% |
| After-tax WACC | 5.9% | 8.3% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 114450.KQ | KPX Lifescience Co Ltd | 0.09 | 0.02 | 0.02 |
| 039860.KQ | NanoEnTek Inc | 0 | 0.9 | 0.9 |
| 043090.KQ | Cube&Company Co Ltd | 1.21 | -0.63 | -0.3 |
| 087010.KQ | Peptron Inc | 0 | -0.08 | -0.08 |
| 206650.KQ | EuBiologics Co Ltd | 0.03 | 0.12 | 0.12 |
| 207940.KS | Samsung Biologics Co Ltd | 0.02 | 0.34 | 0.33 |
| 215380.KQ | Woojung Bio Inc | 1.88 | 1.24 | 0.45 |
| 220100.KQ | Futurechem Co Ltd | 0.03 | 0.51 | 0.5 |
| 237690.KQ | ST Pharm Co Ltd | 0.07 | 0.49 | 0.46 |
| 238120.KQ | Aligned Genetics Inc | 0.07 | 0.56 | 0.53 |
| Low | High | |
| Unlevered beta | 0.25 | 0.46 |
| Relevered beta | 0.27 | 0.49 |
| Adjusted relevered beta | 0.51 | 0.66 |
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.