182360.KQ
Cube Entertainment Inc
Price:  
16,870.00 
KRW
Volume:  
50,968.00
Korea, Republic of | Entertainment
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182360.KQ WACC - Weighted Average Cost of Capital

The WACC of Cube Entertainment Inc (182360.KQ) is 7.1%.

The Cost of Equity of Cube Entertainment Inc (182360.KQ) is 7.65%.
The Cost of Debt of Cube Entertainment Inc (182360.KQ) is 4.25%.

Range Selected
Cost of equity 6.70% - 8.60% 7.65%
Tax rate 26.10% - 36.40% 31.25%
Cost of debt 4.00% - 4.50% 4.25%
WACC 6.2% - 7.9% 7.1%
WACC

182360.KQ WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.62 0.66
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.70% 8.60%
Tax rate 26.10% 36.40%
Debt/Equity ratio 0.13 0.13
Cost of debt 4.00% 4.50%
After-tax WACC 6.2% 7.9%
Selected WACC 7.1%

182360.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 182360.KQ:

cost_of_equity (7.65%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.62) + 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.