033310.KQ WACC - Weighted Average Cost of Capital
The WACC of M2N Co Ltd (033310.KQ) is 6.7%.
| Range | Selected | |
| Cost of equity | 6.0% - 8.8% | 7.4% |
| Tax rate | 15.9% - 22.2% | 19.05% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.6% - 7.9% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.51 | 0.7 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 8.8% |
| Tax rate | 15.9% | 22.2% |
| Debt/Equity ratio | 0.21 | 0.21 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.6% | 7.9% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 033310.KQ | M2N Co Ltd | 0.21 | 0.67 | 0.57 |
| 004250.KS | National Plastic Co Ltd | 0.4 | 0.76 | 0.57 |
| 004450.KS | Samhwa Crown & Closure Co Ltd | 0.88 | 0.39 | 0.23 |
| 004780.KQ | Daeryuk Can Co Ltd | 0.17 | 0.26 | 0.23 |
| 008730.KS | Youlchon Chemical Co Ltd | 0.38 | 2.03 | 1.56 |
| 008870.KS | Kumbi Co Ltd | 2.1 | 0.26 | 0.09 |
| 049830.KQ | Seung Il Corp | 0.12 | 0.55 | 0.51 |
| 115960.KQ | Yonwoo Co Ltd | 0.13 | 0.23 | 0.21 |
| 251970.KQ | Pum Tech Korea Co Ltd | 0.04 | 0.46 | 0.44 |
| 272550.KS | Samyang Packaging Corp | 0.97 | -0.05 | -0.03 |
| Low | High | |
| Unlevered beta | 0.23 | 0.47 |
| Relevered beta | 0.27 | 0.55 |
| Adjusted relevered beta | 0.51 | 0.7 |
033310.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 033310.KQ:
cost_of_equity (7.40%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.51) + 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.