000270.KS
Kia Motors Corp
Price:  
89,400.00 
KRW
Volume:  
1,020,260.00
Korea, Republic of | Automobiles
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000270.KS WACC - Weighted Average Cost of Capital

The WACC of Kia Motors Corp (000270.KS) is 9.3%.

The Cost of Equity of Kia Motors Corp (000270.KS) is 10.65%.
The Cost of Debt of Kia Motors Corp (000270.KS) is 4.25%.

Range Selected
Cost of equity 9.40% - 11.90% 10.65%
Tax rate 26.80% - 27.70% 27.25%
Cost of debt 4.00% - 4.50% 4.25%
WACC 8.2% - 10.4% 9.3%
WACC

000270.KS WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 1.08 1.15
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.40% 11.90%
Tax rate 26.80% 27.70%
Debt/Equity ratio 0.22 0.22
Cost of debt 4.00% 4.50%
After-tax WACC 8.2% 10.4%
Selected WACC 9.3%

000270.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 000270.KS:

cost_of_equity (10.65%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (1.08) + 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.