036460.KS WACC - Weighted Average Cost of Capital

The WACC of Korea Gas Corp (036460.KS) is 7.2%.

The Cost of Equity of Korea Gas Corp (036460.KS) is 11.10%.

The Cost of Debt of Korea Gas Corp (036460.KS) is 9.70%.

	Range	Selected
Cost of equity	9.30% - 12.90%	11.10%
Tax rate	26.90% - 29.60%	28.25%
Cost of debt	4.50% - 14.90%	9.70%
WACC	3.7% - 10.6%	7.2%

WACC

036460.KS 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	1.3

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	12.90%

Tax rate	26.90%	29.60%
Debt/Equity ratio	12.52	12.52
Cost of debt	4.50%	14.90%

After-tax WACC	3.7%	10.6%


Selected WACC	7.2%

036460.KS'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 036460.KS:

cost_of_equity (11.10%) = 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.