049430.KQ
Komelon Corp
Price:  
10,600 
KRW
Volume:  
14,331
Korea, Republic of | Machinery

049430.KQ WACC - Weighted Average Cost of Capital

The WACC of Komelon Corp (049430.KQ) is 9.5%.

The Cost of Equity of Komelon Corp (049430.KQ) is 9.5%.
The Cost of Debt of Komelon Corp (049430.KQ) is 4.25%.

RangeSelected
Cost of equity8.1% - 10.9%9.5%
Tax rate19.0% - 20.4%19.7%
Cost of debt4.0% - 4.5%4.25%
WACC8.1% - 10.9%9.5%
WACC

049430.KQ WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.871
Additional risk adjustments0.0%0.5%
Cost of equity8.1%10.9%
Tax rate19.0%20.4%
Debt/Equity ratio
00
Cost of debt4.0%4.5%
After-tax WACC8.1%10.9%
Selected WACC9.5%

049430.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 049430.KQ:

cost_of_equity (9.50%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.87) + 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.