008370.KQ WACC - Weighted Average Cost of Capital
The WACC of Wonpoong Corp (008370.KQ) is 6.4%.
| Range | Selected | |
| Cost of equity | 7.8% - 10.7% | 9.25% |
| Tax rate | 19.2% - 19.2% | 19.2% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.5% - 7.2% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.81 | 0.98 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 10.7% |
| Tax rate | 19.2% | 19.2% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.5% | 7.2% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 008370.KQ | Wonpoong Corp | 0.99 | 0.16 | 0.09 |
| 001380.KS | SG Choongbang Co Ltd | 0.36 | 1.14 | 0.88 |
| 003610.KS | Pangrim Co Ltd | 0.07 | 0.28 | 0.27 |
| 003830.KS | Daehan Synthetic Fiber Co Ltd | 0.01 | 0.49 | 0.49 |
| 008500.KS | Iljeong Industrial Co Ltd | 1.25 | 0.65 | 0.32 |
| 010600.KS | WellBiotec Co Ltd | 0.04 | 2.02 | 1.96 |
| 011330.KS | Unichem Co Ltd | 0.35 | 0.78 | 0.61 |
| 032080.KQ | Aztech WB Co Ltd | 0.28 | 0.55 | 0.45 |
| 130500.KQ | GH Advanced Materials Inc | 1.76 | 0.25 | 0.1 |
| 144620.KS | Kolon Materials Inc | 0.17 | 1.7 | 1.49 |
| 263020.KQ | Dk&D Co Ltd | 0.2 | -0.4 | -0.35 |
| Low | High | |
| Unlevered beta | 0.32 | 0.49 |
| Relevered beta | 0.72 | 0.97 |
| Adjusted relevered beta | 0.81 | 0.98 |
008370.KQ'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 008370.KQ:
cost_of_equity (9.25%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.81) + 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.