009200.KS WACC - Weighted Average Cost of Capital
The WACC of Moorim Paper Co Ltd (009200.KS) is 7.4%.
| Range | Selected | |
| Cost of equity | 35.7% - 57.7% | 46.7% |
| Tax rate | 12.4% - 44.5% | 28.45% |
| Cost of debt | 4.0% - 11.6% | 7.8% |
| WACC | 5.4% - 9.4% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 5.6 | 7.86 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 35.7% | 57.7% |
| Tax rate | 12.4% | 44.5% |
| Debt/Equity ratio | 16.27 | 16.27 |
| Cost of debt | 4.0% | 11.6% |
| After-tax WACC | 5.4% | 9.4% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 009200.KS | Moorim Paper Co Ltd | 16.27 | 0.29 | 0.02 |
| 002030.KS | Asia Holdings Co Ltd | 1.23 | 0.07 | 0.03 |
| 002310.KS | Asia Paper Manufacturing Co Ltd | 0.22 | 0.53 | 0.45 |
| 002521.SZ | Qifeng New Material Co Ltd | 0.19 | 1.17 | 1.01 |
| 004150.KS | Hansol Holdings Co Ltd | 0.17 | 0.68 | 0.6 |
| 009580.KS | Moorim P&P Co Ltd | 5.13 | 0.26 | 0.05 |
| 016590.KS | Shindaeyang Paper Co Ltd | 0.14 | 0.72 | 0.65 |
| 600103.SS | Fujian Qingshan Paper Industry Co Ltd | 0.28 | 1.17 | 0.95 |
| CENTURYTEX.NS | Century Textile and Industries Ltd | 0.09 | 1.49 | 1.39 |
| WSTCSTPAPR.NS | West Coast Paper Mills Ltd | 0.08 | 1.28 | 1.2 |
| Low | High | |
| Unlevered beta | 0.54 | 0.77 |
| Relevered beta | 7.87 | 11.24 |
| Adjusted relevered beta | 5.6 | 7.86 |
009200.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 009200.KS:
cost_of_equity (46.70%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (5.6) + 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.