950200.KQ
Psomagen Inc
Price:  
8,130.00 
KRW
Volume:  
34,635.00
United States | N/A
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950200.KQ WACC - Weighted Average Cost of Capital

The WACC of Psomagen Inc (950200.KQ) is 9.7%.

The Cost of Equity of Psomagen Inc (950200.KQ) is 9.80%.
The Cost of Debt of Psomagen Inc (950200.KQ) is 5.55%.

Range Selected
Cost of equity 8.80% - 10.80% 9.80%
Tax rate -% - 0.10% 0.05%
Cost of debt 4.10% - 7.00% 5.55%
WACC 8.7% - 10.7% 9.7%
WACC

950200.KQ WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.98 0.98
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.80% 10.80%
Tax rate -% 0.10%
Debt/Equity ratio 0.03 0.03
Cost of debt 4.10% 7.00%
After-tax WACC 8.7% 10.7%
Selected WACC 9.7%

950200.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 950200.KQ:

cost_of_equity (9.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.98) + 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.