RAMM.CN WACC - Weighted Average Cost of Capital

The WACC of Ramm Pharma Corp (RAMM.CN) is 7.1%.

The Cost of Equity of Ramm Pharma Corp (RAMM.CN) is 7.35%.

The Cost of Debt of Ramm Pharma Corp (RAMM.CN) is 5.00%.

	Range	Selected
Cost of equity	6.10% - 8.60%	7.35%
Tax rate	0.10% - 0.10%	0.10%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.0% - 8.2%	7.1%

WACC

RAMM.CN WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.58	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.10%	8.60%

Tax rate	0.10%	0.10%
Debt/Equity ratio	0.11	0.11
Cost of debt	5.00%	5.00%

After-tax WACC	6.0%	8.2%


Selected WACC	7.1%

RAMM.CN'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 RAMM.CN:

cost_of_equity (7.35%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.58) + 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.