311390.KQ
Neo Cremar Co Ltd
Price:  
5,400.00 
KRW
Volume:  
28,465.00
Korea, Republic of | Food Products
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311390.KQ WACC - Weighted Average Cost of Capital

The WACC of Neo Cremar Co Ltd (311390.KQ) is 6.8%.

The Cost of Equity of Neo Cremar Co Ltd (311390.KQ) is 7.35%.
The Cost of Debt of Neo Cremar Co Ltd (311390.KQ) is 5.10%.

Range Selected
Cost of equity 6.40% - 8.30% 7.35%
Tax rate 4.70% - 16.80% 10.75%
Cost of debt 4.00% - 6.20% 5.10%
WACC 5.9% - 7.7% 6.8%
WACC

311390.KQ WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.58 0.62
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.40% 8.30%
Tax rate 4.70% 16.80%
Debt/Equity ratio 0.26 0.26
Cost of debt 4.00% 6.20%
After-tax WACC 5.9% 7.7%
Selected WACC 6.8%

311390.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 311390.KQ:

cost_of_equity (7.35%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.58) + 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.