001130.KS WACC - Weighted Average Cost of Capital

The WACC of Daehan Flour Mill Co Ltd (001130.KS) is 4.9%.

The Cost of Equity of Daehan Flour Mill Co Ltd (001130.KS) is 8.25%.

The Cost of Debt of Daehan Flour Mill Co Ltd (001130.KS) is 4.25%.

	Range	Selected
Cost of equity	6.90% - 9.60%	8.25%
Tax rate	28.20% - 31.20%	29.70%
Cost of debt	4.00% - 4.50%	4.25%
WACC	4.4% - 5.5%	4.9%

WACC

001130.KS WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.67	0.81

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.90%	9.60%

Tax rate	28.20%	31.20%
Debt/Equity ratio	1.69	1.69
Cost of debt	4.00%	4.50%

After-tax WACC	4.4%	5.5%


Selected WACC	4.9%

001130.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 001130.KS:

cost_of_equity (8.25%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.67) + 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.