086670.KQ WACC - Weighted Average Cost of Capital

The WACC of BMT Co Ltd (086670.KQ) is 7.4%.

The Cost of Equity of BMT Co Ltd (086670.KQ) is 10.50%.

The Cost of Debt of BMT Co Ltd (086670.KQ) is 6.15%.

	Range	Selected
Cost of equity	8.20% - 12.80%	10.50%
Tax rate	17.80% - 21.60%	19.70%
Cost of debt	4.00% - 8.30%	6.15%
WACC	5.5% - 9.3%	7.4%

WACC

086670.KQ WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.88	1.28

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.20%	12.80%

Tax rate	17.80%	21.60%
Debt/Equity ratio	1.26	1.26
Cost of debt	4.00%	8.30%

After-tax WACC	5.5%	9.3%


Selected WACC	7.4%

086670.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 086670.KQ:

cost_of_equity (10.50%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.88) + 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.