The WACC of Kuk Il Paper MFG Co Ltd (078130.KQ) is 7.0%.
Range | Selected | |
Cost of equity | 5.9% - 8.1% | 7% |
Tax rate | 22.9% - 44.0% | 33.45% |
Cost of debt | 4.0% - 7.0% | 5.5% |
WACC | 5.9% - 8.1% | 7.0% |
Category | Low | High |
Long-term bond rate | 3.1% | 3.6% |
Equity market risk premium | 5.8% | 6.8% |
Adjusted beta | 0.49 | 0.59 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.9% | 8.1% |
Tax rate | 22.9% | 44.0% |
Debt/Equity ratio | 0 | 0 |
Cost of debt | 4.0% | 7.0% |
After-tax WACC | 5.9% | 8.1% |
Selected WACC | 7.0% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
078130.KQ | Kuk Il Paper MFG Co Ltd | 0 | 0.37 | 0.37 |
001020.KS | PaperCorea Inc | 1.1 | -0.39 | -0.22 |
001810.KQ | Moorim SP Co Ltd | 1.97 | 0.58 | 0.25 |
002310.KS | Asia Paper Manufacturing Co Ltd | 0.2 | 0.58 | 0.51 |
004150.KS | Hansol Holdings Co Ltd | 0.16 | 0.76 | 0.69 |
006740.KS | Youngpoong Paper Mfg Co Ltd | 1.04 | 0.74 | 0.43 |
009200.KS | Moorim Paper Co Ltd | 14.55 | 0.37 | 0.03 |
009580.KS | Moorim P&P Co Ltd | 4.89 | 0.32 | 0.07 |
009770.KS | Sam Jung Pulp Co Ltd | 0.13 | 0.25 | 0.23 |
016590.KS | Shindaeyang Paper Co Ltd | 0.12 | 0.83 | 0.77 |
Low | High | |
Unlevered beta | 0.24 | 0.39 |
Relevered beta | 0.24 | 0.39 |
Adjusted relevered beta | 0.49 | 0.59 |
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 078130.KQ:
cost_of_equity (7.00%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.49) + 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.