051780.KQ WACC - Weighted Average Cost of Capital
The WACC of CuroHoldings Co Ltd (051780.KQ) is 6.0%.
| Range | Selected | |
| Cost of equity | 6.9% - 10.6% | 8.75% |
| Tax rate | 9.2% - 17.0% | 13.1% |
| Cost of debt | 4.3% - 7.0% | 5.65% |
| WACC | 4.7% - 7.2% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.65 | 0.95 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.9% | 10.6% |
| Tax rate | 9.2% | 17.0% |
| Debt/Equity ratio | 2.49 | 2.49 |
| Cost of debt | 4.3% | 7.0% |
| After-tax WACC | 4.7% | 7.2% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 051780.KQ | CuroHoldings Co Ltd | 2.49 | 0.74 | 0.23 |
| 002420.KS | Century Co Ltd | 0.43 | 0.01 | 0.01 |
| 012170.KS | Kiwi Media Group Co Ltd | 0.02 | 0.5 | 0.49 |
| 018700.KQ | Barunson Co Ltd | 0.36 | 0.49 | 0.37 |
| 036420.KS | JContentree Corp | 8.44 | 1.02 | 0.12 |
| 066410.KQ | Bucket Studio Co Ltd | 0.53 | 0.63 | 0.43 |
| 317530.KQ | CarrieSoft Co Ltd | 0.09 | 0.8 | 0.74 |
| 391.HK | Mei Ah Entertainment Group Ltd | 0.36 | -0.23 | -0.17 |
| 40E.SI | Spackman Entertainment Group Ltd | 1.09 | 0.33 | 0.17 |
| 8228.HK | National Arts Entertainment and Culture Group Ltd | 53.72 | 0.31 | 0.01 |
| Low | High | |
| Unlevered beta | 0.15 | 0.28 |
| Relevered beta | 0.48 | 0.93 |
| Adjusted relevered beta | 0.65 | 0.95 |
051780.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 051780.KQ:
cost_of_equity (8.75%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.65) + 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.