065690.KQ
Pakers Co Ltd
Price:  
1,099.00 
KRW
Volume:  
20,534.00
Korea, Republic of | Electronic Equipment, Instruments & Components
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065690.KQ WACC - Weighted Average Cost of Capital

The WACC of Pakers Co Ltd (065690.KQ) is 7.6%.

The Cost of Equity of Pakers Co Ltd (065690.KQ) is 15.95%.
The Cost of Debt of Pakers Co Ltd (065690.KQ) is 4.80%.

Range Selected
Cost of equity 10.90% - 21.00% 15.95%
Tax rate 4.00% - 6.90% 5.45%
Cost of debt 4.80% - 4.80% 4.80%
WACC 6.3% - 8.9% 7.6%
WACC

065690.KQ WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 1.34 2.49
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.90% 21.00%
Tax rate 4.00% 6.90%
Debt/Equity ratio 2.76 2.76
Cost of debt 4.80% 4.80%
After-tax WACC 6.3% 8.9%
Selected WACC 7.6%

065690.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 065690.KQ:

cost_of_equity (15.95%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (1.34) + 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.