The WACC of Kleannara Co Ltd (004540.KS) is 7.1%.
Range | Selected | |
Cost of equity | 11.4% - 19.1% | 15.25% |
Tax rate | 8.0% - 10.5% | 9.25% |
Cost of debt | 4.2% - 7.0% | 5.6% |
WACC | 5.4% - 8.8% | 7.1% |
Category | Low | High |
Long-term bond rate | 3.1% | 3.6% |
Equity market risk premium | 5.8% | 6.8% |
Adjusted beta | 1.43 | 2.21 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 11.4% | 19.1% |
Tax rate | 8.0% | 10.5% |
Debt/Equity ratio | 4.06 | 4.06 |
Cost of debt | 4.2% | 7.0% |
After-tax WACC | 5.4% | 8.8% |
Selected WACC | 7.1% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
004540.KS | Kleannara Co Ltd | 4.06 | 0.53 | 0.11 |
012690.KS | Monalisa Co Ltd | 0.01 | 0.35 | 0.35 |
065950.KQ | Welcron Co Ltd | 3.05 | 0.39 | 0.1 |
2222.HK | NVC International Holdings Ltd | 0.02 | 0.94 | 0.92 |
4951.T | ST Corp | 0.02 | 0.36 | 0.35 |
9919.TW | KNH Enterprise Co Ltd | 0.93 | 0.95 | 0.51 |
DGC.VN | Ducgiang Chemicals Group JSC | 0.03 | 1.42 | 1.39 |
JYOTHYLAB.NS | Jyothy Labs Ltd | 0 | 0.84 | 0.83 |
NTPM.KL | NTPM Holdings Bhd | 1.15 | 0.2 | 0.1 |
UCID.JK | Uni-charm Indonesia PT | 0.11 | 0.79 | 0.72 |
Low | High | |
Unlevered beta | 0.35 | 0.6 |
Relevered beta | 1.64 | 2.81 |
Adjusted relevered beta | 1.43 | 2.21 |
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.