KER.WA WACC - Weighted Average Cost of Capital

The WACC of Kernel Holding S.A. (KER.WA) is 10.2%.

The Cost of Equity of Kernel Holding S.A. (KER.WA) is 13.00%.

The Cost of Debt of Kernel Holding S.A. (KER.WA) is 7.35%.

	Range	Selected
Cost of equity	11.10% - 14.90%	13.00%
Tax rate	12.90% - 17.90%	15.40%
Cost of debt	7.00% - 7.70%	7.35%
WACC	9.0% - 11.3%	10.2%

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	0.87	1.14

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.10%	14.90%

Tax rate	12.90%	17.90%
Debt/Equity ratio	0.71	0.71
Cost of debt	7.00%	7.70%

After-tax WACC	9.0%	11.3%


Selected WACC	10.2%

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 (13.00%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.87) + 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.