066620.KQ WACC - Weighted Average Cost of Capital

The WACC of Kukbo Design Co Ltd (066620.KQ) is 9.7%.

The Cost of Equity of Kukbo Design Co Ltd (066620.KQ) is 9.80%.

The Cost of Debt of Kukbo Design Co Ltd (066620.KQ) is 5.10%.

	Range	Selected
Cost of equity	8.30% - 11.30%	9.80%
Tax rate	27.00% - 27.90%	27.45%
Cost of debt	4.00% - 6.20%	5.10%
WACC	8.2% - 11.3%	9.7%

WACC

066620.KQ WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.89	1.06

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	11.30%

Tax rate	27.00%	27.90%
Debt/Equity ratio	0	0
Cost of debt	4.00%	6.20%

After-tax WACC	8.2%	11.3%


Selected WACC	9.7%

066620.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 066620.KQ:

cost_of_equity (9.80%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.89) + 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.