016100.KQ
Leaders Cosmetics Co Ltd
Price:  
2,580.00 
KRW
Volume:  
27,743.00
Korea, Republic of | Personal Products
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016100.KQ WACC - Weighted Average Cost of Capital

The WACC of Leaders Cosmetics Co Ltd (016100.KQ) is 8.8%.

The Cost of Equity of Leaders Cosmetics Co Ltd (016100.KQ) is 11.50%.
The Cost of Debt of Leaders Cosmetics Co Ltd (016100.KQ) is 5.50%.

Range Selected
Cost of equity 9.20% - 13.80% 11.50%
Tax rate 24.10% - 37.40% 30.75%
Cost of debt 4.00% - 7.00% 5.50%
WACC 7.1% - 10.5% 8.8%
WACC

016100.KQ WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 1.05 1.43
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.20% 13.80%
Tax rate 24.10% 37.40%
Debt/Equity ratio 0.53 0.53
Cost of debt 4.00% 7.00%
After-tax WACC 7.1% 10.5%
Selected WACC 8.8%

016100.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 016100.KQ:

cost_of_equity (11.50%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (1.05) + 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.