323230.KQ WACC - Weighted Average Cost of Capital

The WACC of MFM Korea Co Ltd (323230.KQ) is 24.1%.

The Cost of Equity of MFM Korea Co Ltd (323230.KQ) is 20.55%.

The Cost of Debt of MFM Korea Co Ltd (323230.KQ) is 28.85%.

	Range	Selected
Cost of equity	16.60% - 24.50%	20.55%
Tax rate	11.50% - 15.50%	13.50%
Cost of debt	7.00% - 50.70%	28.85%
WACC	7.3% - 40.9%	24.1%

WACC

323230.KQ WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	2.32	3

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.60%	24.50%

Tax rate	11.50%	15.50%
Debt/Equity ratio	8.37	8.37
Cost of debt	7.00%	50.70%

After-tax WACC	7.3%	40.9%


Selected WACC	24.1%

323230.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 323230.KQ:

cost_of_equity (20.55%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (2.32) + 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.