KER.WA WACC - Weighted Average Cost of Capital
The WACC of Kernel Holding S.A. (KER.WA) is 8.9%.
| Range | Selected | |
| Cost of equity | 9.5% - 12.1% | 10.8% |
| Tax rate | 11.7% - 16.7% | 14.2% |
| Cost of debt | 6.7% - 8.5% | 7.6% |
| WACC | 8.0% - 9.9% | 8.9% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.63 | 0.76 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.5% | 12.1% |
| Tax rate | 11.7% | 16.7% |
| Debt/Equity ratio | 0.75 | 0.75 |
| Cost of debt | 6.7% | 8.5% |
| After-tax WACC | 8.0% | 9.9% |
| Selected WACC | 8.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KER.WA | Kernel Holding S.A. | 0.75 | 1.28 | 0.78 |
| AEP.L | Anglo-Eastern Plantations PLC | 0 | 0.27 | 0.27 |
| CAM.L | Camellia PLC | 0.19 | 0.6 | 0.52 |
| IMC.WA | IMC SA | 0.47 | 0.66 | 0.47 |
| KWS.DE | KWS SAAT SE & Co KgaA | 0.35 | 0.36 | 0.28 |
| LNA1L.VS | Linas Agro Group AB | 1.63 | 1.88 | 0.79 |
| OIZ.IR | Origin Enterprises PLC | 0.69 | 0.56 | 0.35 |
| RIN.PA | Vilmorin & Cie SA | 0.9 | 0.37 | 0.21 |
| SIP.BR | Sipef NV | 0 | -0.02 | -0.02 |
| UIE.CO | United International Enterprises Ltd | 0 | 0.12 | 0.12 |
| Low | High | |
| Unlevered beta | 0.27 | 0.4 |
| Relevered beta | 0.45 | 0.64 |
| Adjusted relevered beta | 0.63 | 0.76 |
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 (10.80%) = 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.