166090.KQ WACC - Weighted Average Cost of Capital

The WACC of Hana Materials Inc (166090.KQ) is 11.3%.

The Cost of Equity of Hana Materials Inc (166090.KQ) is 13.80%.

The Cost of Debt of Hana Materials Inc (166090.KQ) is 4.25%.

	Range	Selected
Cost of equity	12.10% - 15.50%	13.80%
Tax rate	17.10% - 19.20%	18.15%
Cost of debt	4.00% - 4.50%	4.25%
WACC	10.0% - 12.6%	11.3%

WACC

166090.KQ WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	1.55	1.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.10%	15.50%

Tax rate	17.10%	19.20%
Debt/Equity ratio	0.32	0.32
Cost of debt	4.00%	4.50%

After-tax WACC	10.0%	12.6%


Selected WACC	11.3%

166090.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 166090.KQ:

cost_of_equity (13.80%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (1.55) + 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.