288330.KQ WACC - Weighted Average Cost of Capital
The WACC of Bridge Biotherapeutics Inc (288330.KQ) is 6.4%.
| Range | Selected | |
| Cost of equity | 5.1% - 7.6% | 6.35% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 7.0% - 10.0% | 8.5% |
| WACC | 5.2% - 7.6% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.35 | 0.52 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 7.6% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 0.07 | 0.07 |
| Cost of debt | 7.0% | 10.0% |
| After-tax WACC | 5.2% | 7.6% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 288330.KQ | Bridge Biotherapeutics Inc | 0.07 | -1.22 | -1.15 |
| 038070.KQ | Seoulin Bioscience Co Ltd | 0.05 | 0.97 | 0.93 |
| 046210.KQ | Panagene Inc | 0.27 | 0.96 | 0.79 |
| 064550.KQ | Bioneer Corp | 0.07 | 0.51 | 0.48 |
| 109820.KQ | Genematrix Inc | 0.06 | 0.13 | 0.12 |
| 127120.KQ | DNA Link Inc | 0.09 | -0.66 | -0.62 |
| 182400.KQ | NKMax Co Ltd | 0.22 | 0.04 | 0.03 |
| 217730.KQ | Kang Stem Biotech Co Ltd | 0.08 | 0.67 | 0.63 |
| 222110.KQ | PanGen Biotech Inc | 0.01 | 0.04 | 0.04 |
| 226950.KQ | OliX Pharmaceuticals Inc | 0.04 | -0.44 | -0.43 |
| Low | High | |
| Unlevered beta | 0.04 | 0.26 |
| Relevered beta | 0.03 | 0.28 |
| Adjusted relevered beta | 0.35 | 0.52 |
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 (6.35%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.35) + 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.