002420.KS
Century Co Ltd
Price:  
5,840 
KRW
Volume:  
9,095
Korea, Republic of | Entertainment

002420.KS WACC - Weighted Average Cost of Capital

The WACC of Century Co Ltd (002420.KS) is 6.6%.

The Cost of Equity of Century Co Ltd (002420.KS) is 7.65%.
The Cost of Debt of Century Co Ltd (002420.KS) is 5.55%.

RangeSelected
Cost of equity6.6% - 8.7%7.65%
Tax rate25.0% - 25.0%25%
Cost of debt4.1% - 7.0%5.55%
WACC5.6% - 7.7%6.6%
WACC

002420.KS WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.610.68
Additional risk adjustments0.0%0.5%
Cost of equity6.6%8.7%
Tax rate25.0%25.0%
Debt/Equity ratio
0.430.43
Cost of debt4.1%7.0%
After-tax WACC5.6%7.7%
Selected WACC6.6%

002420.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 002420.KS:

cost_of_equity (7.65%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.61) + 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.