014190.KQ WACC - Weighted Average Cost of Capital

The WACC of Wonik Cube Corp (014190.KQ) is 6.6%.

The Cost of Equity of Wonik Cube Corp (014190.KQ) is 7.70%.

The Cost of Debt of Wonik Cube Corp (014190.KQ) is 4.25%.

	Range	Selected
Cost of equity	6.50% - 8.90%	7.70%
Tax rate	12.90% - 20.50%	16.70%
Cost of debt	4.00% - 4.50%	4.25%
WACC	5.8% - 7.5%	6.6%

WACC

014190.KQ WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.59	0.7

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.50%	8.90%

Tax rate	12.90%	20.50%
Debt/Equity ratio	0.34	0.34
Cost of debt	4.00%	4.50%

After-tax WACC	5.8%	7.5%


Selected WACC	6.6%

014190.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 014190.KQ:

cost_of_equity (7.70%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.59) + 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.