016600.KQ WACC - Weighted Average Cost of Capital

The WACC of Q Capital Partners Co Ltd (016600.KQ) is 10.1%.

The Cost of Equity of Q Capital Partners Co Ltd (016600.KQ) is 10.50%.

The Cost of Debt of Q Capital Partners Co Ltd (016600.KQ) is 13.10%.

	Range	Selected
Cost of equity	8.60% - 12.40%	10.50%
Tax rate	21.00% - 27.90%	24.45%
Cost of debt	6.10% - 20.10%	13.10%
WACC	6.9% - 13.3%	10.1%

WACC

016600.KQ WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.94	1.23

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.60%	12.40%

Tax rate	21.00%	27.90%
Debt/Equity ratio	0.78	0.78
Cost of debt	6.10%	20.10%

After-tax WACC	6.9%	13.3%


Selected WACC	10.1%

016600.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 016600.KQ:

cost_of_equity (10.50%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.94) + 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.