064240.KQ WACC - Weighted Average Cost of Capital

The WACC of Homecast Co Ltd (064240.KQ) is 14.4%.

The Cost of Equity of Homecast Co Ltd (064240.KQ) is 8.10%.

The Cost of Debt of Homecast Co Ltd (064240.KQ) is 59.20%.

	Range	Selected
Cost of equity	7.10% - 9.10%	8.10%
Tax rate	-% - 1.70%	0.85%
Cost of debt	7.00% - 111.40%	59.20%
WACC	7.1% - 21.6%	14.4%

WACC

064240.KQ WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.7	0.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.10%	9.10%

Tax rate	-%	1.70%
Debt/Equity ratio	0.14	0.14
Cost of debt	7.00%	111.40%

After-tax WACC	7.1%	21.6%


Selected WACC	14.4%

064240.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 064240.KQ:

cost_of_equity (8.10%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.7) + 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.