018700.KQ WACC - Weighted Average Cost of Capital
The WACC of Barunson Co Ltd (018700.KQ) is 7.0%.
| Range | Selected | |
| Cost of equity | 5.7% - 8.4% | 7.05% |
| Tax rate | 0.0% - 0.3% | 0.15% |
| Cost of debt | 5.6% - 7.0% | 6.3% |
| WACC | 5.7% - 8.2% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.46 | 0.63 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 8.4% |
| Tax rate | 0.0% | 0.3% |
| Debt/Equity ratio | 0.12 | 0.12 |
| Cost of debt | 5.6% | 7.0% |
| After-tax WACC | 5.7% | 8.2% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 018700.KQ | Barunson Co Ltd | 0.12 | 0.98 | 0.87 |
| 002420.KS | Century Co Ltd | 0.43 | 0.24 | 0.17 |
| 012170.KS | Kiwi Media Group Co Ltd | 0.02 | -0.12 | -0.12 |
| 036420.KS | JContentree Corp | 7.15 | 1.17 | 0.14 |
| 051780.KQ | CuroHoldings Co Ltd | 2.25 | 0.55 | 0.17 |
| 066410.KQ | Bucket Studio Co Ltd | 0.53 | 0.63 | 0.41 |
| 079160.KS | CJ CGV Co Ltd | 2.97 | 0.61 | 0.15 |
| 310200.KQ | AniPlus Inc | 0.24 | 0.61 | 0.49 |
| 317530.KQ | CarrieSoft Co Ltd | 0.09 | 0.75 | 0.69 |
| 322780.KQ | Copus Korea Co Ltd | 0.31 | 0.51 | 0.39 |
| Low | High | |
| Unlevered beta | 0.17 | 0.4 |
| Relevered beta | 0.19 | 0.45 |
| Adjusted relevered beta | 0.46 | 0.63 |
018700.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 018700.KQ:
cost_of_equity (7.05%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.46) + 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.