130500.KQ WACC - Weighted Average Cost of Capital

The WACC of GH Advanced Materials Inc (130500.KQ) is 6.3%.

The Cost of Equity of GH Advanced Materials Inc (130500.KQ) is 10.45%.

The Cost of Debt of GH Advanced Materials Inc (130500.KQ) is 4.80%.

	Range	Selected
Cost of equity	8.70% - 12.20%	10.45%
Tax rate	12.40% - 19.50%	15.95%
Cost of debt	4.30% - 5.30%	4.80%
WACC	5.5% - 7.1%	6.3%

WACC

130500.KQ WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.96	1.19

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.70%	12.20%

Tax rate	12.40%	19.50%
Debt/Equity ratio	1.83	1.83
Cost of debt	4.30%	5.30%

After-tax WACC	5.5%	7.1%


Selected WACC	6.3%

130500.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 130500.KQ:

cost_of_equity (10.45%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.96) + 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.