900120.KQ
CKH Food & Health Ltd
Price:  
76.00 
KRW
Volume:  
121,624,720.00
Cayman Islands | Personal Products
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900120.KQ WACC - Weighted Average Cost of Capital

The WACC of CKH Food & Health Ltd (900120.KQ) is 12.2%.

The Cost of Equity of CKH Food & Health Ltd (900120.KQ) is 12.60%.
The Cost of Debt of CKH Food & Health Ltd (900120.KQ) is 5.25%.

Range Selected
Cost of equity 11.00% - 14.20% 12.60%
Tax rate 22.10% - 22.30% 22.20%
Cost of debt 4.00% - 6.50% 5.25%
WACC 10.7% - 13.8% 12.2%
WACC

900120.KQ WACC calculation

Category Low High
Long-term bond rate 5.9% 6.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.86 1.04
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.00% 14.20%
Tax rate 22.10% 22.30%
Debt/Equity ratio 0.05 0.05
Cost of debt 4.00% 6.50%
After-tax WACC 10.7% 13.8%
Selected WACC 12.2%

900120.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 900120.KQ:

cost_of_equity (12.60%) = risk_free_rate (6.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.86) + 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.