018120.KQ WACC - Weighted Average Cost of Capital
The WACC of Jinro Distillers Co Ltd (018120.KQ) is 6.6%.
| Range | Selected | |
| Cost of equity | 5.6% - 7.7% | 6.65% |
| Tax rate | 22.0% - 23.3% | 22.65% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.6% - 7.7% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.43 | 0.53 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 7.7% |
| Tax rate | 22.0% | 23.3% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.6% | 7.7% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 018120.KQ | Jinro Distillers Co Ltd | 0 | 0.1 | 0.1 |
| 000080.KS | HiteJinro Co Ltd | 0.79 | 0.39 | 0.24 |
| 000890.KS | Bohae Brewery Co Ltd | 0.46 | 1.16 | 0.85 |
| 023150.KS | MHEthanol Co Ltd | 5.28 | 0.33 | 0.07 |
| 023900.KQ | PungkukAlcholnd | 0.08 | 0.48 | 0.45 |
| 033920.KS | Muhak Co Ltd | 0.17 | 0.45 | 0.4 |
| 2540.T | Yomeishu Seizo Co Ltd | 0.03 | 0.18 | 0.17 |
| 603779.SS | Weilong Grape Wine Co Ltd | 0.11 | 0.94 | 0.87 |
| ABRD.ME | Abrau-Durso PAO | 0.32 | 0.1 | 0.08 |
| FWL.NZ | Foley Wines Ltd | 1.95 | -0.47 | -0.19 |
| Low | High | |
| Unlevered beta | 0.14 | 0.31 |
| Relevered beta | 0.15 | 0.3 |
| Adjusted relevered beta | 0.43 | 0.53 |
018120.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 018120.KQ:
cost_of_equity (6.65%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.43) + 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.