340440.KQ WACC - Weighted Average Cost of Capital
The WACC of Hanwha Plus No.1 Special Purpose Acquisition Co (340440.KQ) is 8.5%.
| Range | Selected | |
| Cost of equity | 7.7% - 12.1% | 9.9% |
| Tax rate | 18.0% - 21.1% | 19.55% |
| Cost of debt | 4.0% - 10.9% | 7.45% |
| WACC | 6.1% - 10.9% | 8.5% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.79 | 1.18 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.7% | 12.1% |
| Tax rate | 18.0% | 21.1% |
| Debt/Equity ratio | 0.55 | 0.55 |
| Cost of debt | 4.0% | 10.9% |
| After-tax WACC | 6.1% | 10.9% |
| Selected WACC | 8.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 340440.KQ | Hanwha Plus No.1 Special Purpose Acquisition Co | 0.55 | 0.72 | 0.5 |
| 287410.KQ | Yuanta 3 Special Purpose Acquisition Co Ltd | 0.03 | -0.69 | -0.67 |
| 307070.KQ | SK ACPC No.4 Special Purpose Acquisition Co Ltd | 0.07 | 1.02 | 0.96 |
| 307160.KQ | Hana Must Sixth Special Purpose Acquisition Co | 0.08 | 1.05 | 0.99 |
| 307870.KQ | Sangsangin Ian No.1 Special Purpose Acquisition Co Ltd | 0.94 | -0.43 | -0.24 |
| 313750.KQ | Yuanta 4 Special Purpose Acquisition Co Ltd | 0.12 | 1.07 | 0.97 |
| 336060.KQ | Yuanta 5 Special Purpose Acquisition Co | 0.02 | 0.83 | 0.82 |
| 336570.KQ | Daishin Balance No.8 Special Purpose Acquisition Co | 0.03 | 0.15 | 0.15 |
| 340360.KQ | Yuanta 6 Special Purpose Acquisition Co | 0.15 | 0.5 | 0.44 |
| 343510.KQ | Hana Financial Sixteenth Special Purpose Acquisition Co | 0.12 | 1.1 | 1 |
| Low | High | |
| Unlevered beta | 0.48 | 0.88 |
| Relevered beta | 0.69 | 1.27 |
| Adjusted relevered beta | 0.79 | 1.18 |
340440.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 340440.KQ:
cost_of_equity (9.90%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.79) + 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.