330350.KQ WACC - Weighted Average Cost of Capital
The WACC of Withus Pharmaceutical Co Ltd (330350.KQ) is 6.1%.
| Range | Selected | |
| Cost of equity | 5.7% - 7.7% | 6.7% |
| Tax rate | 10.5% - 15.2% | 12.85% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.3% - 6.9% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.46 | 0.52 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 7.7% |
| Tax rate | 10.5% | 15.2% |
| Debt/Equity ratio | 0.23 | 0.23 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.3% | 6.9% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 330350.KQ | Withus Pharmaceutical Co Ltd | 0.23 | 0.06 | 0.05 |
| 002800.KQ | Sinsin Pharmaceutical Co Ltd | 0.5 | 0.16 | 0.11 |
| 012790.KQ | Sinil Pharmaceutical Co Ltd | 0.01 | 0.33 | 0.32 |
| 014570.KQ | Korean Drug Co Ltd | 0 | 0.38 | 0.38 |
| 034940.KQ | ChoA Pharmaceutical Co Ltd | 0.7 | 0.36 | 0.22 |
| 041910.KQ | EstechPharma Co Ltd | 0.01 | 1.27 | 1.26 |
| 072020.KQ | Choong Ang Vaccine Laboratory | 0.09 | 0.29 | 0.27 |
| 080720.KQ | Union Korea Pharm Co Ltd | 1.11 | 0.37 | 0.19 |
| 106190.KQ | High Tech Pharm Co Ltd | 0.06 | 0.05 | 0.04 |
| 200780.KQ | BCWorldPharm Co Ltd | 2.04 | 0.3 | 0.11 |
| Low | High | |
| Unlevered beta | 0.16 | 0.24 |
| Relevered beta | 0.19 | 0.28 |
| Adjusted relevered beta | 0.46 | 0.52 |
330350.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 330350.KQ:
cost_of_equity (6.70%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.46) + 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.