002320.KS WACC - Weighted Average Cost of Capital
The WACC of Hanjin Transportation Co Ltd (002320.KS) is 5.4%.
| Range | Selected | |
| Cost of equity | 9.5% - 14.3% | 11.9% |
| Tax rate | 21.4% - 29.1% | 25.25% |
| Cost of debt | 4.0% - 8.3% | 6.15% |
| WACC | 3.9% - 6.9% | 5.4% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 1.11 | 1.5 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.5% | 14.3% |
| Tax rate | 21.4% | 29.1% |
| Debt/Equity ratio | 7.04 | 7.04 |
| Cost of debt | 4.0% | 8.3% |
| After-tax WACC | 3.9% | 6.9% |
| Selected WACC | 5.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002320.KS | Hanjin Transportation Co Ltd | 7.04 | 0.58 | 0.09 |
| 009070.KS | KCTC | 2.89 | -0.47 | -0.15 |
| 009180.KS | Hansol Logistics Co Ltd | 0.81 | 0.38 | 0.24 |
| 040610.KQ | SG&G Corp | 0.85 | 0.32 | 0.2 |
| 2384.T | SBS Holdings Inc | 0.97 | 0.59 | 0.34 |
| 3399.HK | Guangdong Yueyun Transportation Co Ltd | 2.94 | 0.48 | 0.15 |
| 603128.SS | CTS International Logistics Corp Ltd | 0.18 | 1.09 | 0.96 |
| 9025.T | Konoike Transport Co Ltd | 0.37 | 0.94 | 0.74 |
| 9302.T | Mitsui Soko Holdings Co Ltd | 0.32 | 0.21 | 0.17 |
| S08.SI | Singapore Post Ltd | 0.76 | 0.88 | 0.56 |
| Low | High | |
| Unlevered beta | 0.18 | 0.28 |
| Relevered beta | 1.16 | 1.75 |
| Adjusted relevered beta | 1.11 | 1.5 |
002320.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 002320.KS:
cost_of_equity (11.90%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (1.11) + 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.