068050.KQ WACC - Weighted Average Cost of Capital
The WACC of Pan Entertainment Co Ltd (068050.KQ) is 7.1%.
| Range | Selected | |
| Cost of equity | 6.9% - 8.9% | 7.9% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 6.1% - 8.1% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.66 | 0.7 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.9% | 8.9% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 0.28 | 0.28 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 6.1% | 8.1% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 068050.KQ | Pan Entertainment Co Ltd | 0.28 | 0.51 | 0.42 |
| 018700.KQ | Barunson Co Ltd | 0.17 | 0.51 | 0.45 |
| 046390.KQ | Samhwa Networks Co Ltd | 0.02 | 0.33 | 0.33 |
| 051780.KQ | CuroHoldings Co Ltd | 2.23 | 0.78 | 0.28 |
| 066410.KQ | Bucket Studio Co Ltd | 0.53 | 0.63 | 0.45 |
| 086980.KQ | Showbox Corp | 0.01 | 0.48 | 0.47 |
| 089230.KQ | E&M Co Ltd | 1.84 | 0.86 | 0.35 |
| 206560.KQ | Dexter Studios Co Ltd | 0.15 | 1.02 | 0.92 |
| 241840.KQ | AStory Co Ltd | 0.06 | 0.61 | 0.58 |
| 299900.KQ | Wysiwyg Studios Co Ltd | 0.28 | 1.85 | 1.52 |
| Low | High | |
| Unlevered beta | 0.43 | 0.46 |
| Relevered beta | 0.49 | 0.55 |
| Adjusted relevered beta | 0.66 | 0.7 |
068050.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 068050.KQ:
cost_of_equity (7.90%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.66) + 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.