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 |
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.