000140.KS
HiteJinro Holdings Co Ltd
Price:  
11,440.00 
KRW
Volume:  
113,584.00
Korea, Republic of | Beverages
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

000140.KS WACC - Weighted Average Cost of Capital

The WACC of HiteJinro Holdings Co Ltd (000140.KS) is 6.1%.

The Cost of Equity of HiteJinro Holdings Co Ltd (000140.KS) is 22.65%.
The Cost of Debt of HiteJinro Holdings Co Ltd (000140.KS) is 5.50%.

Range Selected
Cost of equity 19.10% - 26.20% 22.65%
Tax rate 32.60% - 34.70% 33.65%
Cost of debt 4.00% - 7.00% 5.50%
WACC 4.8% - 7.4% 6.1%
WACC

000140.KS WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 2.75 3.25
Additional risk adjustments 0.0% 0.5%
Cost of equity 19.10% 26.20%
Tax rate 32.60% 34.70%
Debt/Equity ratio 6.76 6.76
Cost of debt 4.00% 7.00%
After-tax WACC 4.8% 7.4%
Selected WACC 6.1%

000140.KS'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 000140.KS:

cost_of_equity (22.65%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (2.75) + 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.