KER.WA WACC - Weighted Average Cost of Capital

The WACC of Kernel Holding S.A. (KER.WA) is 10.6%.

The Cost of Equity of Kernel Holding S.A. (KER.WA) is 13.05%.

The Cost of Debt of Kernel Holding S.A. (KER.WA) is 6.95%.

	Range	Selected
Cost of equity	11.20% - 14.90%	13.05%
Tax rate	12.90% - 17.90%	15.40%
Cost of debt	6.10% - 7.80%	6.95%
WACC	9.2% - 12.0%	10.6%

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	0.89	1.14

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.20%	14.90%

Tax rate	12.90%	17.90%
Debt/Equity ratio	0.5	0.5
Cost of debt	6.10%	7.80%

After-tax WACC	9.2%	12.0%


Selected WACC	10.6%

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 (13.05%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.89) + 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.