083310.KQ WACC - Weighted Average Cost of Capital

The WACC of LOTVacuum Co Ltd (083310.KQ) is 11.4%.

The Cost of Equity of LOTVacuum Co Ltd (083310.KQ) is 13.05%.

The Cost of Debt of LOTVacuum Co Ltd (083310.KQ) is 5.50%.

	Range	Selected
Cost of equity	11.30% - 14.80%	13.05%
Tax rate	26.30% - 35.30%	30.80%
Cost of debt	4.00% - 7.00%	5.50%
WACC	9.9% - 13.0%	11.4%

WACC

083310.KQ WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	1.42	1.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.30%	14.80%

Tax rate	26.30%	35.30%
Debt/Equity ratio	0.21	0.21
Cost of debt	4.00%	7.00%

After-tax WACC	9.9%	13.0%


Selected WACC	11.4%

083310.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 083310.KQ:

cost_of_equity (13.05%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (1.42) + 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.