004150.KS
Hansol Holdings Co Ltd
Price:  
3,400 
KRW
Volume:  
299,079
Korea, Republic of | Paper & Forest Products

004150.KS WACC - Weighted Average Cost of Capital

The WACC of Hansol Holdings Co Ltd (004150.KS) is 6.7%.

The Cost of Equity of Hansol Holdings Co Ltd (004150.KS) is 7.15%.
The Cost of Debt of Hansol Holdings Co Ltd (004150.KS) is 5.4%.

RangeSelected
Cost of equity6.0% - 8.3%7.15%
Tax rate22.6% - 26.2%24.4%
Cost of debt4.8% - 6.0%5.4%
WACC5.7% - 7.7%6.7%
WACC

004150.KS WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.50.62
Additional risk adjustments0.0%0.5%
Cost of equity6.0%8.3%
Tax rate22.6%26.2%
Debt/Equity ratio
0.170.17
Cost of debt4.8%6.0%
After-tax WACC5.7%7.7%
Selected WACC6.7%

004150.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 004150.KS:

cost_of_equity (7.15%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.5) + 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.