001810.KQ WACC - Weighted Average Cost of Capital
The WACC of Moorim SP Co Ltd (001810.KQ) is 8.4%.
| Range | Selected | |
| Cost of equity | 5.7% - 8.9% | 7.3% |
| Tax rate | 24.4% - 25.4% | 24.9% |
| Cost of debt | 4.0% - 20.1% | 12.05% |
| WACC | 3.9% - 13.0% | 8.4% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.45 | 0.71 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 8.9% |
| Tax rate | 24.4% | 25.4% |
| Debt/Equity ratio | 2 | 2 |
| Cost of debt | 4.0% | 20.1% |
| After-tax WACC | 3.9% | 13.0% |
| Selected WACC | 8.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 001810.KQ | Moorim SP Co Ltd | 2 | 0.58 | 0.23 |
| 001020.KS | PaperCorea Inc | 1.06 | -0.47 | -0.26 |
| 002030.KS | Asia Holdings Co Ltd | 1.23 | 0.07 | 0.04 |
| 004150.KS | Hansol Holdings Co Ltd | 0.17 | 0.68 | 0.61 |
| 006740.KS | Youngpoong Paper Mfg Co Ltd | 1.02 | 0.72 | 0.41 |
| 009200.KS | Moorim Paper Co Ltd | 16.27 | 0.29 | 0.02 |
| 009580.KS | Moorim P&P Co Ltd | 5.13 | 0.26 | 0.05 |
| 009770.KS | Sam Jung Pulp Co Ltd | 0.13 | 0.24 | 0.22 |
| 078130.KQ | Kuk Il Paper MFG Co Ltd | 0 | 0.37 | 0.37 |
| 213500.KS | Hansol Paper Co Ltd | 4.09 | 0.36 | 0.09 |
| Low | High | |
| Unlevered beta | 0.07 | 0.23 |
| Relevered beta | 0.18 | 0.57 |
| Adjusted relevered beta | 0.45 | 0.71 |
001810.KQ'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 001810.KQ:
cost_of_equity (7.30%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.45) + 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.