018700.KQ
Barunson Co Ltd
Price:  
1,231 
KRW
Volume:  
104,668
Korea, Republic of | Entertainment

018700.KQ WACC - Weighted Average Cost of Capital

The WACC of Barunson Co Ltd (018700.KQ) is 7.0%.

The Cost of Equity of Barunson Co Ltd (018700.KQ) is 7.05%.
The Cost of Debt of Barunson Co Ltd (018700.KQ) is 6.3%.

RangeSelected
Cost of equity5.7% - 8.4%7.05%
Tax rate0.0% - 0.3%0.15%
Cost of debt5.6% - 7.0%6.3%
WACC5.7% - 8.2%7.0%
WACC

018700.KQ WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.460.63
Additional risk adjustments0.0%0.5%
Cost of equity5.7%8.4%
Tax rate0.0%0.3%
Debt/Equity ratio
0.120.12
Cost of debt5.6%7.0%
After-tax WACC5.7%8.2%
Selected WACC7.0%

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.