023600.KQ WACC - Weighted Average Cost of Capital
The WACC of Sambo Corrugated Board Co Ltd (023600.KQ) is 6.1%.
| Range | Selected | |
| Cost of equity | 6.6% - 9.2% | 7.9% |
| Tax rate | 19.7% - 19.9% | 19.8% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.2% - 7.0% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.6 | 0.75 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.6% | 9.2% |
| Tax rate | 19.7% | 19.9% |
| Debt/Equity ratio | 0.66 | 0.66 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.2% | 7.0% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 023600.KQ | Sambo Corrugated Board Co Ltd | 0.66 | 0.35 | 0.23 |
| 002200.KS | Korea Export Packaging Industrial Co Ltd | 0.01 | 0.29 | 0.29 |
| 004250.KS | National Plastic Co Ltd | 0.4 | 0.78 | 0.59 |
| 009460.KS | Hanchang Paper Co Ltd | 3.26 | 0.67 | 0.19 |
| 011280.KS | Tailim Packaging Co Ltd | 1.62 | 0.11 | 0.05 |
| 014160.KS | Daeyoung Packaging Co Ltd | 0.09 | -0.19 | -0.17 |
| 027970.KS | Seha Corp | 1.29 | 0.58 | 0.28 |
| COSMOFILMS.NS | Cosmo Films Ltd | 0.32 | 1.16 | 0.93 |
| HUHTAMAKI.NS | Huhtamaki India Ltd | 0.1 | 1.26 | 1.17 |
| TGUAN.KL | Thong Guan Industries Bhd | 0.45 | 1.2 | 0.88 |
| Low | High | |
| Unlevered beta | 0.26 | 0.41 |
| Relevered beta | 0.4 | 0.63 |
| Adjusted relevered beta | 0.6 | 0.75 |
023600.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 023600.KQ:
cost_of_equity (7.90%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.6) + 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.