035620.KQ WACC - Weighted Average Cost of Capital
The WACC of Barunson Entertainment & Arts Corp (035620.KQ) is 6.7%.
| Range | Selected | |
| Cost of equity | 6.9% - 9.2% | 8.05% |
| Tax rate | 3.3% - 8.4% | 5.85% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.5% - 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 | 0.65 | 0.75 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.9% | 9.2% |
| Tax rate | 3.3% | 8.4% |
| Debt/Equity ratio | 0.82 | 0.82 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.5% | 7.9% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 035620.KQ | Barunson Entertainment & Arts Corp | 0.82 | 1.09 | 0.61 |
| 023770.KQ | Playwith Inc | 0.02 | 0.25 | 0.25 |
| 030350.KQ | Dragonfly GF Co Ltd | 0.43 | -0.01 | 0 |
| 047080.KQ | Hanbit Soft Inc | 0.16 | 1.21 | 1.04 |
| 058630.KQ | Mgame Corp | 0.01 | 0.44 | 0.44 |
| 078340.KQ | Com2uS Corp | 0.63 | 0.34 | 0.21 |
| 095660.KQ | Neowiz | 0.01 | 0.3 | 0.3 |
| 101730.KQ | Joymax Co Ltd | 0.05 | 0.76 | 0.72 |
| 206400.KQ | BenoHoldings Inc | 0.08 | 0.16 | 0.15 |
| 215000.KQ | Golfzon Co Ltd | 0.17 | 0.33 | 0.28 |
| Low | High | |
| Unlevered beta | 0.27 | 0.35 |
| Relevered beta | 0.48 | 0.63 |
| Adjusted relevered beta | 0.65 | 0.75 |
035620.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 035620.KQ:
cost_of_equity (8.05%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.65) + 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.