104830.KQ WACC - Weighted Average Cost of Capital
The WACC of Wonik Materials Co Ltd (104830.KQ) is 8.0%.
| Range | Selected | |
| Cost of equity | 5.7% - 8.5% | 7.1% |
| Tax rate | 23.0% - 24.8% | 23.9% |
| Cost of debt | 4.0% - 26.8% | 15.4% |
| WACC | 5.2% - 10.8% | 8.0% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.45 | 0.65 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 8.5% |
| Tax rate | 23.0% | 24.8% |
| Debt/Equity ratio | 0.25 | 0.25 |
| Cost of debt | 4.0% | 26.8% |
| After-tax WACC | 5.2% | 10.8% |
| Selected WACC | 8.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 104830.KQ | Wonik Materials Co Ltd | 0.25 | 1.21 | 1.02 |
| 002100.KS | Kyungnong Corp | 0.6 | 0.49 | 0.34 |
| 011500.KS | Hannong Chemicals Inc | 0.17 | 1.63 | 1.45 |
| 017890.KQ | Korea Alcohol Industrial | 0.18 | 0.55 | 0.49 |
| 083420.KS | Green Chemical Co Ltd | 0.22 | 0.28 | 0.24 |
| 091340.KQ | S&K Polytec Co Ltd | 2.69 | 0.02 | 0.01 |
| 100250.KS | Chinyang Holdings Corp | 0.67 | 0.05 | 0.03 |
| 107590.KS | Miwon Holdings Co Ltd | 0.61 | -0.14 | -0.1 |
| 134380.KS | Miwon Chemicals Co Ltd | 0 | 0.02 | 0.02 |
| 138490.KS | Kolon Plastics Inc | 0.03 | 0.89 | 0.86 |
| Low | High | |
| Unlevered beta | 0.15 | 0.4 |
| Relevered beta | 0.18 | 0.48 |
| Adjusted relevered beta | 0.45 | 0.65 |
104830.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 104830.KQ:
cost_of_equity (7.10%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.45) + 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.