049800.KS WACC - Weighted Average Cost of Capital

The WACC of Woojin Plaimm Co Ltd (049800.KS) is 7.1%.

The Cost of Equity of Woojin Plaimm Co Ltd (049800.KS) is 8.50%.

The Cost of Debt of Woojin Plaimm Co Ltd (049800.KS) is 7.85%.

	Range	Selected
Cost of equity	6.60% - 10.40%	8.50%
Tax rate	13.10% - 15.80%	14.45%
Cost of debt	4.10% - 11.60%	7.85%
WACC	4.3% - 9.9%	7.1%

WACC

049800.KS WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.6	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	10.40%

Tax rate	13.10%	15.80%
Debt/Equity ratio	3.16	3.16
Cost of debt	4.10%	11.60%

After-tax WACC	4.3%	9.9%


Selected WACC	7.1%

049800.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 049800.KS:

cost_of_equity (8.50%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.6) + 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.