000590.KS
CS Holdings Co Ltd
Price:  
96,200 
KRW
Volume:  
812
Korea, Republic of | Machinery

000590.KS WACC - Weighted Average Cost of Capital

The WACC of CS Holdings Co Ltd (000590.KS) is 7.8%.

The Cost of Equity of CS Holdings Co Ltd (000590.KS) is 7.9%.
The Cost of Debt of CS Holdings Co Ltd (000590.KS) is 5.85%.

RangeSelected
Cost of equity6.3% - 9.5%7.9%
Tax rate17.7% - 18.1%17.9%
Cost of debt4.0% - 7.7%5.85%
WACC6.2% - 9.4%7.8%
WACC

000590.KS WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.550.79
Additional risk adjustments0.0%0.5%
Cost of equity6.3%9.5%
Tax rate17.7%18.1%
Debt/Equity ratio
0.010.01
Cost of debt4.0%7.7%
After-tax WACC6.2%9.4%
Selected WACC7.8%

000590.KS'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 000590.KS:

cost_of_equity (7.90%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.55) + 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.