023410.KQ WACC - Weighted Average Cost of Capital
The WACC of Eugene Corp (023410.KQ) is 8.3%.
| Range | Selected | |
| Cost of equity | 7.9% - 16.5% | 12.2% |
| Tax rate | 23.6% - 29.7% | 26.65% |
| Cost of debt | 5.4% - 14.9% | 10.15% |
| WACC | 4.9% - 11.7% | 8.3% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.82 | 1.82 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.9% | 16.5% |
| Tax rate | 23.6% | 29.7% |
| Debt/Equity ratio | 4 | 4 |
| Cost of debt | 5.4% | 14.9% |
| After-tax WACC | 4.9% | 11.7% |
| Selected WACC | 8.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 023410.KQ | Eugene Corp | 4 | 0.62 | 0.16 |
| 003300.KS | Hanil Holdings Co Ltd | 2.01 | 0.16 | 0.06 |
| 003670.KS | Posco Chemical Co Ltd | 0.43 | 1.59 | 1.21 |
| 004870.KS | Tway Holdings Inc | 0.06 | 0.58 | 0.55 |
| 004980.KS | Sungshin Cement Co Ltd | 2.25 | 0.23 | 0.09 |
| 183190.KS | Asia Cement Co Ltd | 1.71 | 0.23 | 0.1 |
| 228340.KQ | Tongyang Pile Inc | 0 | 0.57 | 0.57 |
| 300720.KS | Hanil Cement Co Ltd | 0.63 | 0.3 | 0.21 |
| 5352.T | Krosaki Harima Corp | 0.4 | 1.14 | 0.88 |
| BIRLACORPN.NS | Birla Corporation Ltd | 0.37 | 0.86 | 0.68 |
| Low | High | |
| Unlevered beta | 0.19 | 0.56 |
| Relevered beta | 0.73 | 2.22 |
| Adjusted relevered beta | 0.82 | 1.82 |
023410.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 023410.KQ:
cost_of_equity (12.20%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.82) + 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.