115390.KS WACC - Weighted Average Cost of Capital
The WACC of LOCK&LOCK Co Ltd (115390.KS) is 7.2%.
| Range | Selected | |
| Cost of equity | 6.3% - 8.6% | 7.45% |
| Tax rate | 25.0% - 25.0% | 25% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.1% - 8.3% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.56 | 0.66 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 8.6% |
| Tax rate | 25.0% | 25.0% |
| Debt/Equity ratio | 0.07 | 0.07 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.1% | 8.3% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 115390.KS | LOCK&LOCK Co Ltd | 0.07 | -0.39 | -0.37 |
| 002403.SZ | Aishida Co Ltd | 0.38 | 1.12 | 0.87 |
| 002615.SZ | ZheJiang Haers Vacuum Containers Co Ltd | 0.21 | 0.74 | 0.64 |
| 003800.KQ | AceBed | 0 | 0.36 | 0.36 |
| 012200.KS | Keyang Electric Machinery Co Ltd | 1.48 | 0.61 | 0.29 |
| 024940.KQ | PNpoongnyun Co Ltd | 0 | 1.87 | 1.87 |
| 025440.KQ | Daesung Eltec Co Ltd | 4.3 | -0.39 | -0.09 |
| 044340.KQ | Winix Inc | 1.09 | 1.34 | 0.74 |
| 192400.KS | Cuckoo Holdings Co Ltd | 0.01 | 0.02 | 0.02 |
| 7874.T | Lec Inc | 1.02 | 0.61 | 0.35 |
| Low | High | |
| Unlevered beta | 0.33 | 0.47 |
| Relevered beta | 0.34 | 0.49 |
| Adjusted relevered beta | 0.56 | 0.66 |
115390.KS'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 115390.KS:
cost_of_equity (7.45%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.56) + 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.