060250.KQ WACC - Weighted Average Cost of Capital
The WACC of NHN KCP Corp (060250.KQ) is 9.9%.
| Range | Selected | |
| Cost of equity | 8.1% - 11.7% | 9.9% |
| Tax rate | 23.0% - 23.8% | 23.4% |
| Cost of debt | 4.0% - 35.3% | 19.65% |
| WACC | 8.1% - 11.8% | 9.9% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.87 | 1.12 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.1% | 11.7% |
| Tax rate | 23.0% | 23.8% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 35.3% |
| After-tax WACC | 8.1% | 11.8% |
| Selected WACC | 9.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 060250.KQ | NHN KCP Corp | 0.01 | 1.3 | 1.3 |
| 025770.KQ | Korea Information & Communications Co Ltd | 0.04 | 0.71 | 0.68 |
| 035600.KQ | KGInicis Co Ltd | 1.82 | 0.92 | 0.38 |
| 036800.KQ | Nice Information & Telecommunication Inc | 0.08 | 0.5 | 0.47 |
| 046440.KQ | KG Mobilians Co Ltd | 0.25 | 0.65 | 0.54 |
| 064260.KQ | Danal Co Ltd | 0.78 | 1.4 | 0.88 |
| 234340.KQ | SettleBank Corp | 0.07 | 1.14 | 1.08 |
| 300773.SZ | Lakala Payment Co Ltd | 0.02 | 1.68 | 1.66 |
| CAMS.NS | Computer Age Management Services Ltd | 0 | 1.54 | 1.53 |
| TYR.AX | Tyro Payments Ltd | 0.07 | 1.42 | 1.35 |
| Low | High | |
| Unlevered beta | 0.8 | 1.17 |
| Relevered beta | 0.81 | 1.18 |
| Adjusted relevered beta | 0.87 | 1.12 |
060250.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 060250.KQ:
cost_of_equity (9.90%) = 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.