001780.KS
Aluko Co Ltd
Price:  
2,310 
KRW
Volume:  
168,322
Korea, Republic of | Building Products

001780.KS WACC - Weighted Average Cost of Capital

The WACC of Aluko Co Ltd (001780.KS) is 6.8%.

The Cost of Equity of Aluko Co Ltd (001780.KS) is 6.6%.
The Cost of Debt of Aluko Co Ltd (001780.KS) is 8.6%.

RangeSelected
Cost of equity5.4% - 7.8%6.6%
Tax rate13.6% - 23.1%18.35%
Cost of debt5.6% - 11.6%8.6%
WACC5.1% - 8.5%6.8%
WACC

001780.KS WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.40.55
Additional risk adjustments0.0%0.5%
Cost of equity5.4%7.8%
Tax rate13.6%23.1%
Debt/Equity ratio
1.891.89
Cost of debt5.6%11.6%
After-tax WACC5.1%8.5%
Selected WACC6.8%

001780.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 001780.KS:

cost_of_equity (6.60%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.4) + 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.