002380.KS WACC - Weighted Average Cost of Capital
The WACC of KCC Corp (002380.KS) is 6.9%.
| Range | Selected | |
| Cost of equity | 9.8% - 13.6% | 11.7% |
| Tax rate | 25.0% - 25.0% | 25% |
| Cost of debt | 4.4% - 8.3% | 6.35% |
| WACC | 5.3% - 8.5% | 6.9% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 1.15 | 1.39 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.8% | 13.6% |
| Tax rate | 25.0% | 25.0% |
| Debt/Equity ratio | 2.21 | 2.21 |
| Cost of debt | 4.4% | 8.3% |
| After-tax WACC | 5.3% | 8.5% |
| Selected WACC | 6.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002380.KS | KCC Corp | 2.21 | 0.75 | 0.28 |
| 004000.KS | Lotte Fine Chemical Co Ltd | 0.22 | 0.94 | 0.81 |
| 010060.KS | OCI Co Ltd | 1.63 | 1.3 | 0.59 |
| 011780.KS | Kumho Petro Chemical Co Ltd | 0.37 | 1.19 | 0.93 |
| 012630.KS | HDC Holdings Co Ltd | 3.53 | -0.04 | -0.01 |
| 120110.KS | Kolon Industries Inc | 2.82 | 1.05 | 0.34 |
| 4182.T | Mitsubishi Gas Chemical Co Inc | 0.46 | 0.92 | 0.69 |
| 4202.T | Daicel Corp | 0.9 | 1.03 | 0.61 |
| 4208.T | Ube Industries Ltd | 1.4 | 0.77 | 0.38 |
| 546.HK | Fufeng Group Ltd | 0.74 | 0.68 | 0.44 |
| Low | High | |
| Unlevered beta | 0.41 | 0.6 |
| Relevered beta | 1.22 | 1.58 |
| Adjusted relevered beta | 1.15 | 1.39 |
002380.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 002380.KS:
cost_of_equity (11.70%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (1.15) + 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.