039420.KQ WACC - Weighted Average Cost of Capital

The WACC of KL-Net Corp (039420.KQ) is 9.5%.

The Cost of Equity of KL-Net Corp (039420.KQ) is 9.55%.

The Cost of Debt of KL-Net Corp (039420.KQ) is 4.25%.

	Range	Selected
Cost of equity	7.90% - 11.20%	9.55%
Tax rate	12.20% - 12.90%	12.55%
Cost of debt	4.00% - 4.50%	4.25%
WACC	7.9% - 11.2%	9.5%

WACC

039420.KQ WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.83	1.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	11.20%

Tax rate	12.20%	12.90%
Debt/Equity ratio	0.01	0.01
Cost of debt	4.00%	4.50%

After-tax WACC	7.9%	11.2%


Selected WACC	9.5%

039420.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 039420.KQ:

cost_of_equity (9.55%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.83) + 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.