215380.KQ
Woojung Bio Inc
Price:  
1,978.00 
KRW
Volume:  
233,701.00
Korea, Republic of | Life Sciences Tools & Services
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215380.KQ WACC - Weighted Average Cost of Capital

The WACC of Woojung Bio Inc (215380.KQ) is 9.8%.

The Cost of Equity of Woojung Bio Inc (215380.KQ) is 8.70%.
The Cost of Debt of Woojung Bio Inc (215380.KQ) is 13.55%.

Range Selected
Cost of equity 6.90% - 10.50% 8.70%
Tax rate 22.10% - 22.30% 22.20%
Cost of debt 4.00% - 23.10% 13.55%
WACC 4.6% - 15.1% 9.8%
WACC

215380.KQ WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.65 0.95
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.90% 10.50%
Tax rate 22.10% 22.30%
Debt/Equity ratio 1.62 1.62
Cost of debt 4.00% 23.10%
After-tax WACC 4.6% 15.1%
Selected WACC 9.8%

215380.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 215380.KQ:

cost_of_equity (8.70%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.65) + 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.