046310.KQ WACC - Weighted Average Cost of Capital

The WACC of BG T&A Co (046310.KQ) is 8.0%.

The Cost of Equity of BG T&A Co (046310.KQ) is 9.50%.

The Cost of Debt of BG T&A Co (046310.KQ) is 4.25%.

	Range	Selected
Cost of equity	7.90% - 11.10%	9.50%
Tax rate	11.30% - 16.90%	14.10%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.8% - 9.3%	8.0%

WACC

046310.KQ WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.82	1.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	11.10%

Tax rate	11.30%	16.90%
Debt/Equity ratio	0.34	0.34
Cost of debt	4.00%	4.50%

After-tax WACC	6.8%	9.3%


Selected WACC	8.0%

046310.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 046310.KQ:

cost_of_equity (9.50%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.82) + 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.