011280.KS WACC - Weighted Average Cost of Capital
The WACC of Tailim Packaging Co Ltd (011280.KS) is 5.5%.
| Range | Selected | |
| Cost of equity | 6.2% - 8.9% | 7.55% |
| Tax rate | 22.3% - 24.5% | 23.4% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.3% - 6.7% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.53 | 0.71 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 8.9% |
| Tax rate | 22.3% | 24.5% |
| Debt/Equity ratio | 1.62 | 1.62 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.3% | 6.7% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 011280.KS | Tailim Packaging Co Ltd | 1.62 | 0.08 | 0.04 |
| 002200.KS | Korea Export Packaging Industrial Co Ltd | 0.01 | 0.29 | 0.29 |
| 002870.KS | Shinpoong Paper MFG Co Ltd | 0.05 | -0.46 | -0.45 |
| 005820.KS | Wonlim Corp | 0.26 | 0.53 | 0.45 |
| 009460.KS | Hanchang Paper Co Ltd | 3.23 | 0.7 | 0.2 |
| 014160.KS | Daeyoung Packaging Co Ltd | 0.09 | -0.15 | -0.14 |
| 017650.KQ | Daelim Paper | 0.06 | -0.01 | -0.01 |
| 023600.KQ | Sambo Corrugated Board Co Ltd | 0.66 | 0.35 | 0.23 |
| 027970.KS | Seha Corp | 1.28 | 0.57 | 0.29 |
| 037230.KQ | Hankuk Package Co Ltd | 1.52 | 0.67 | 0.31 |
| Low | High | |
| Unlevered beta | 0.14 | 0.25 |
| Relevered beta | 0.3 | 0.57 |
| Adjusted relevered beta | 0.53 | 0.71 |
011280.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 011280.KS:
cost_of_equity (7.55%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.53) + 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.