KER.WA WACC - Weighted Average Cost of Capital

The WACC of Kernel Holding S.A. (KER.WA) is 8.9%.

The Cost of Equity of Kernel Holding S.A. (KER.WA) is 10.60%.

The Cost of Debt of Kernel Holding S.A. (KER.WA) is 7.60%.

	Range	Selected
Cost of equity	9.50% - 11.70%	10.60%
Tax rate	11.70% - 16.70%	14.20%
Cost of debt	6.70% - 8.50%	7.60%
WACC	8.0% - 9.8%	8.9%

WACC

KER.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.63	0.7

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.50%	11.70%

Tax rate	11.70%	16.70%
Debt/Equity ratio	0.7	0.7
Cost of debt	6.70%	8.50%

After-tax WACC	8.0%	9.8%


Selected WACC	8.9%

KER.WA'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 KER.WA:

cost_of_equity (10.60%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.63) + 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.