024880.KQ
KPF
Price:  
5,150.00 
KRW
Volume:  
140,602.00
Korea, Republic of | Machinery
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024880.KQ WACC - Weighted Average Cost of Capital

The WACC of KPF (024880.KQ) is 6.8%.

The Cost of Equity of KPF (024880.KQ) is 14.35%.
The Cost of Debt of KPF (024880.KQ) is 5.35%.

Range Selected
Cost of equity 9.30% - 19.40% 14.35%
Tax rate 22.10% - 22.30% 22.20%
Cost of debt 4.50% - 6.20% 5.35%
WACC 5.0% - 8.6% 6.8%
WACC

024880.KQ WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 1.07 2.25
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.30% 19.40%
Tax rate 22.10% 22.30%
Debt/Equity ratio 2.84 2.84
Cost of debt 4.50% 6.20%
After-tax WACC 5.0% 8.6%
Selected WACC 6.8%

024880.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 024880.KQ:

cost_of_equity (14.35%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (1.07) + 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.