237690.KQ WACC - Weighted Average Cost of Capital
The WACC of ST Pharm Co Ltd (237690.KQ) is 6.5%.
| Range | Selected | |
| Cost of equity | 5.8% - 7.5% | 6.65% |
| Tax rate | 23.2% - 24.4% | 23.8% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.6% - 7.3% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.47 | 0.51 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 7.5% |
| Tax rate | 23.2% | 24.4% |
| Debt/Equity ratio | 0.07 | 0.07 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.6% | 7.3% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 237690.KQ | ST Pharm Co Ltd | 0.07 | 0.24 | 0.23 |
| 039860.KQ | NanoEnTek Inc | 0 | 0.76 | 0.75 |
| 043090.KQ | Cube&Company Co Ltd | 1.21 | -0.63 | -0.33 |
| 087010.KQ | Peptron Inc | 0 | -0.59 | -0.59 |
| 114450.KQ | KPX Lifescience Co Ltd | 0.08 | 0.19 | 0.18 |
| 206650.KQ | EuBiologics Co Ltd | 0.03 | 0.22 | 0.21 |
| 207940.KS | Samsung Biologics Co Ltd | 0.02 | 0.16 | 0.16 |
| 220100.KQ | Futurechem Co Ltd | 0.03 | 0.56 | 0.55 |
| 245620.KQ | Eone Diagnomics Genome Center Co Ltd | 1.24 | 0.59 | 0.3 |
| GSS.AX | Genetic Signatures Ltd | 0.01 | 0.28 | 0.28 |
| Low | High | |
| Unlevered beta | 0.2 | 0.25 |
| Relevered beta | 0.21 | 0.27 |
| Adjusted relevered beta | 0.47 | 0.51 |
237690.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 237690.KQ:
cost_of_equity (6.65%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.47) + 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.