078130.KQ
Kuk Il Paper MFG Co Ltd
Price:  
800 
KRW
Volume:  
47,927,200
Korea, Republic of | Paper & Forest Products

078130.KQ WACC - Weighted Average Cost of Capital

The WACC of Kuk Il Paper MFG Co Ltd (078130.KQ) is 7.0%.

The Cost of Equity of Kuk Il Paper MFG Co Ltd (078130.KQ) is 7%.
The Cost of Debt of Kuk Il Paper MFG Co Ltd (078130.KQ) is 5.5%.

RangeSelected
Cost of equity5.9% - 8.1%7%
Tax rate22.9% - 44.0%33.45%
Cost of debt4.0% - 7.0%5.5%
WACC5.9% - 8.1%7.0%
WACC

078130.KQ WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.490.59
Additional risk adjustments0.0%0.5%
Cost of equity5.9%8.1%
Tax rate22.9%44.0%
Debt/Equity ratio
00
Cost of debt4.0%7.0%
After-tax WACC5.9%8.1%
Selected WACC7.0%

078130.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 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.