264900.KS WACC - Weighted Average Cost of Capital
The WACC of Crown Confectionery Co Ltd (264900.KS) is 7.4%.
| Range | Selected | |
| Cost of equity | 7.1% - 9.1% | 8.1% |
| Tax rate | 21.1% - 22.2% | 21.65% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.5% - 8.2% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.69 | 0.74 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.1% | 9.1% |
| Tax rate | 21.1% | 22.2% |
| Debt/Equity ratio | 0.18 | 0.18 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.5% | 8.2% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 264900.KS | Crown Confectionery Co Ltd | 0.18 | 0.58 | 0.51 |
| 003230.KS | Samyang Foods Co Ltd | 0.05 | 0.69 | 0.66 |
| 003680.KS | Hansung Enterprise Co Ltd | 3.49 | 0.67 | 0.18 |
| 005860.KQ | Hanil Feed Co Ltd | 0.23 | 0.87 | 0.74 |
| 011150.KS | CJ Seafood Corp | 0.34 | 0.68 | 0.53 |
| 014710.KS | Sajo Sea Food Co Ltd | 0.79 | 0.15 | 0.1 |
| 088910.KQ | Dongwoo Farm To Table Co Ltd | 0.99 | 0.36 | 0.2 |
| 103840.KQ | Wooyang Co Ltd | 1.34 | 1.1 | 0.54 |
| 248170.KS | Sempio Foods Co | 0.59 | 0.61 | 0.42 |
| 290720.KQ | FoodNamoo Inc | 1.53 | 1.17 | 0.53 |
| Low | High | |
| Unlevered beta | 0.47 | 0.53 |
| Relevered beta | 0.54 | 0.61 |
| Adjusted relevered beta | 0.69 | 0.74 |
264900.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 264900.KS:
cost_of_equity (8.10%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.69) + 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.