180640.KS WACC - Weighted Average Cost of Capital
The WACC of Hanjin Kal (180640.KS) is 6.2%.
| Range | Selected | |
| Cost of equity | 5.3% - 7.3% | 6.3% |
| Tax rate | 11.0% - 13.5% | 12.25% |
| Cost of debt | 4.0% - 6.7% | 5.35% |
| WACC | 5.2% - 7.2% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.38 | 0.47 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 7.3% |
| Tax rate | 11.0% | 13.5% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 4.0% | 6.7% |
| After-tax WACC | 5.2% | 7.2% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 180640.KS | Hanjin Kal | 0.08 | 1.05 | 0.98 |
| 020560.KS | Asiana Airlines Inc | 3.32 | 0.34 | 0.09 |
| 089590.KS | JejuAir Co Ltd | 1.22 | 0.62 | 0.3 |
| 091810.KS | T'way Air Co Ltd | 1.2 | 0.53 | 0.26 |
| 272450.KS | Jin Air Co Ltd | 0.88 | 0.53 | 0.3 |
| 298690.KS | Air Busan Co Ltd | 2.87 | 0.53 | 0.15 |
| CMPP.JK | AirAsia Indonesia Tbk PT | 9.57 | 0.56 | 0.06 |
| NOK.BK | Nok Airlines PCL | 23.35 | -1.45 | -0.07 |
| THAI.BK | Thai Airways International PCL | 26.57 | 0.91 | 0.04 |
| UTAR.ME | Aviakompaniya UTair PAO | 0.54 | -0.52 | -0.36 |
| Low | High | |
| Unlevered beta | 0.08 | 0.2 |
| Relevered beta | 0.07 | 0.21 |
| Adjusted relevered beta | 0.38 | 0.47 |
180640.KS'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 180640.KS:
cost_of_equity (6.30%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.38) + 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.