340440.KQ WACC - Weighted Average Cost of Capital

The WACC of Hanwha Plus No.1 Special Purpose Acquisition Co (340440.KQ) is 8.5%.

The Cost of Equity of Hanwha Plus No.1 Special Purpose Acquisition Co (340440.KQ) is 9.90%.

The Cost of Debt of Hanwha Plus No.1 Special Purpose Acquisition Co (340440.KQ) is 7.45%.

	Range	Selected
Cost of equity	7.70% - 12.10%	9.90%
Tax rate	18.00% - 21.10%	19.55%
Cost of debt	4.00% - 10.90%	7.45%
WACC	6.1% - 10.9%	8.5%

WACC

340440.KQ WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.79	1.18

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.70%	12.10%

Tax rate	18.00%	21.10%
Debt/Equity ratio	0.55	0.55
Cost of debt	4.00%	10.90%

After-tax WACC	6.1%	10.9%


Selected WACC	8.5%

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.