137950.KQ WACC - Weighted Average Cost of Capital

The WACC of JC Chemical Corp Ltd (137950.KQ) is 5.2%.

The Cost of Equity of JC Chemical Corp Ltd (137950.KQ) is 8.50%.

The Cost of Debt of JC Chemical Corp Ltd (137950.KQ) is 5.10%.

	Range	Selected
Cost of equity	7.30% - 9.70%	8.50%
Tax rate	32.30% - 34.40%	33.35%
Cost of debt	4.00% - 6.20%	5.10%
WACC	4.4% - 6.1%	5.2%

WACC

137950.KQ WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.73	0.82

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.30%	9.70%

Tax rate	32.30%	34.40%
Debt/Equity ratio	1.75	1.75
Cost of debt	4.00%	6.20%

After-tax WACC	4.4%	6.1%


Selected WACC	5.2%

137950.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 137950.KQ:

cost_of_equity (8.50%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.73) + 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.