122450.KQ WACC - Weighted Average Cost of Capital

The WACC of KMH Co Ltd (122450.KQ) is 5.3%.

The Cost of Equity of KMH Co Ltd (122450.KQ) is 11.35%.

The Cost of Debt of KMH Co Ltd (122450.KQ) is 4.45%.

	Range	Selected
Cost of equity	7.10% - 15.60%	11.35%
Tax rate	25.60% - 28.10%	26.85%
Cost of debt	4.30% - 4.60%	4.45%
WACC	4.2% - 6.4%	5.3%

WACC

122450.KQ WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.7	1.69

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.10%	15.60%

Tax rate	25.60%	28.10%
Debt/Equity ratio	2.89	2.89
Cost of debt	4.30%	4.60%

After-tax WACC	4.2%	6.4%


Selected WACC	5.3%

122450.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 122450.KQ:

cost_of_equity (11.35%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.7) + 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.