288330.KQ
Bridge Biotherapeutics Inc
Price:  
2,770 
KRW
Volume:  
1,954,908
Korea, Republic of | Biotechnology

288330.KQ WACC - Weighted Average Cost of Capital

The WACC of Bridge Biotherapeutics Inc (288330.KQ) is 6.6%.

The Cost of Equity of Bridge Biotherapeutics Inc (288330.KQ) is 6.55%.
The Cost of Debt of Bridge Biotherapeutics Inc (288330.KQ) is 8.5%.

RangeSelected
Cost of equity5.4% - 7.7%6.55%
Tax rate22.1% - 22.3%22.2%
Cost of debt7.0% - 10.0%8.5%
WACC5.4% - 7.7%6.6%
WACC

288330.KQ WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.320.46
Additional risk adjustments0.5%1.0%
Cost of equity5.4%7.7%
Tax rate22.1%22.3%
Debt/Equity ratio
0.020.02
Cost of debt7.0%10.0%
After-tax WACC5.4%7.7%
Selected WACC6.6%

288330.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 288330.KQ:

cost_of_equity (6.55%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.32) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.