282330.KS
BGF Retail Co Ltd
Price:  
107,800.00 
KRW
Volume:  
28,780.00
Korea, Republic of | Food & Staples Retailing
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282330.KS WACC - Weighted Average Cost of Capital

The WACC of BGF Retail Co Ltd (282330.KS) is 6.7%.

The Cost of Equity of BGF Retail Co Ltd (282330.KS) is 8.30%.
The Cost of Debt of BGF Retail Co Ltd (282330.KS) is 4.25%.

Range Selected
Cost of equity 6.70% - 9.90% 8.30%
Tax rate 22.40% - 23.50% 22.95%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.5% - 7.9% 6.7%
WACC

282330.KS WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.62 0.86
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.70% 9.90%
Tax rate 22.40% 23.50%
Debt/Equity ratio 0.46 0.46
Cost of debt 4.00% 4.50%
After-tax WACC 5.5% 7.9%
Selected WACC 6.7%

282330.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 282330.KS:

cost_of_equity (8.30%) = 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.