192400.KS
Cuckoo Holdings Co Ltd
Price:  
30,550.00 
KRW
Volume:  
26,389.00
Korea, Republic of | Household Durables
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192400.KS WACC - Weighted Average Cost of Capital

The WACC of Cuckoo Holdings Co Ltd (192400.KS) is 6.8%.

The Cost of Equity of Cuckoo Holdings Co Ltd (192400.KS) is 6.85%.
The Cost of Debt of Cuckoo Holdings Co Ltd (192400.KS) is 4.25%.

Range Selected
Cost of equity 5.80% - 7.90% 6.85%
Tax rate 18.80% - 19.60% 19.20%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.8% - 7.8% 6.8%
WACC

192400.KS WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.47 0.56
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.80% 7.90%
Tax rate 18.80% 19.60%
Debt/Equity ratio 0.01 0.01
Cost of debt 4.00% 4.50%
After-tax WACC 5.8% 7.8%
Selected WACC 6.8%

192400.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 192400.KS:

cost_of_equity (6.85%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.47) + 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.