Pharmadrug Inc (BUZZ.CN) WACC Analysis

As of June 6, 2025, Pharmadrug Inc (BUZZ.CN) carries a Weighted Average Cost of Capital (WACC) of 8.7%. WACC reflects the blended rate Pharmadrug Inc must pay to both equity and debt holders.

Within that, the cost of equity is 7.8%, the cost of debt is 7.0%, and the effective tax rate is 0.3%.

Breakdown of WACC Components

• Long-term bond rate: 3.4% – 3.9%
• Equity market risk premium: 4.7% – 5.7%
• Adjusted beta: 0.93 – 0.97
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.06

What It Means for Investors

With a selected WACC of 8.7%, Pharmadrug Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.