009070.KS
KCTC
Price:  
3,825.00 
KRW
Volume:  
71,782.00
Korea, Republic of | Air Freight & Logistics
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009070.KS WACC - Weighted Average Cost of Capital

The WACC of KCTC (009070.KS) is 7.6%.

The Cost of Equity of KCTC (009070.KS) is 16.40%.
The Cost of Debt of KCTC (009070.KS) is 5.75%.

Range Selected
Cost of equity 12.80% - 20.00% 16.40%
Tax rate 15.90% - 18.60% 17.25%
Cost of debt 4.80% - 6.70% 5.75%
WACC 6.2% - 9.1% 7.6%
WACC

009070.KS WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 1.66 2.33
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.80% 20.00%
Tax rate 15.90% 18.60%
Debt/Equity ratio 2.99 2.99
Cost of debt 4.80% 6.70%
After-tax WACC 6.2% 9.1%
Selected WACC 7.6%

009070.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 009070.KS:

cost_of_equity (16.40%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (1.66) + 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.