043200.KQ WACC - Weighted Average Cost of Capital

The WACC of Paru Co Ltd (043200.KQ) is 9.1%.

The Cost of Equity of Paru Co Ltd (043200.KQ) is 10.30%.

The Cost of Debt of Paru Co Ltd (043200.KQ) is 5.85%.

	Range	Selected
Cost of equity	8.20% - 12.40%	10.30%
Tax rate	0.10% - 0.20%	0.15%
Cost of debt	4.70% - 7.00%	5.85%
WACC	7.3% - 11.0%	9.1%

WACC

043200.KQ WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.88	1.22

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.20%	12.40%

Tax rate	0.10%	0.20%
Debt/Equity ratio	0.35	0.35
Cost of debt	4.70%	7.00%

After-tax WACC	7.3%	11.0%


Selected WACC	9.1%

043200.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 043200.KQ:

cost_of_equity (10.30%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.88) + 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.