136480.KQ WACC - Weighted Average Cost of Capital

The WACC of Harim Co Ltd (136480.KQ) is 5.8%.

The Cost of Equity of Harim Co Ltd (136480.KQ) is 7.95%.

The Cost of Debt of Harim Co Ltd (136480.KQ) is 6.15%.

	Range	Selected
Cost of equity	6.70% - 9.20%	7.95%
Tax rate	31.50% - 33.30%	32.40%
Cost of debt	4.00% - 8.30%	6.15%
WACC	4.5% - 7.1%	5.8%

WACC

136480.KQ WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.63	0.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.70%	9.20%

Tax rate	31.50%	33.30%
Debt/Equity ratio	1.33	1.33
Cost of debt	4.00%	8.30%

After-tax WACC	4.5%	7.1%


Selected WACC	5.8%

136480.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 136480.KQ:

cost_of_equity (7.95%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.63) + 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.