091700.KQ WACC - Weighted Average Cost of Capital

The WACC of Partron Co Ltd (091700.KQ) is 7.9%.

The Cost of Equity of Partron Co Ltd (091700.KQ) is 8.45%.

The Cost of Debt of Partron Co Ltd (091700.KQ) is 4.25%.

	Range	Selected
Cost of equity	6.90% - 10.00%	8.45%
Tax rate	24.20% - 27.00%	25.60%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.5% - 9.3%	7.9%

WACC

091700.KQ WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.66	0.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.90%	10.00%

Tax rate	24.20%	27.00%
Debt/Equity ratio	0.11	0.11
Cost of debt	4.00%	4.50%

After-tax WACC	6.5%	9.3%


Selected WACC	7.9%

091700.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 091700.KQ:

cost_of_equity (8.45%) = 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.