004540.KS
Kleannara Co Ltd
Price:  
2,210 
KRW
Volume:  
131,972
Korea, Republic of | Household Products

004540.KS WACC - Weighted Average Cost of Capital

The WACC of Kleannara Co Ltd (004540.KS) is 7.1%.

The Cost of Equity of Kleannara Co Ltd (004540.KS) is 15.25%.
The Cost of Debt of Kleannara Co Ltd (004540.KS) is 5.6%.

RangeSelected
Cost of equity11.4% - 19.1%15.25%
Tax rate8.0% - 10.5%9.25%
Cost of debt4.2% - 7.0%5.6%
WACC5.4% - 8.8%7.1%
WACC

004540.KS WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta1.432.21
Additional risk adjustments0.0%0.5%
Cost of equity11.4%19.1%
Tax rate8.0%10.5%
Debt/Equity ratio
4.064.06
Cost of debt4.2%7.0%
After-tax WACC5.4%8.8%
Selected WACC7.1%

004540.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 004540.KS:

cost_of_equity (15.25%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (1.43) + 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.