000590.KS WACC - Weighted Average Cost of Capital
The WACC of CS Holdings Co Ltd (000590.KS) is 7.8%.
| Range | Selected | |
| Cost of equity | 6.3% - 9.5% | 7.9% |
| Tax rate | 17.7% - 18.1% | 17.9% |
| Cost of debt | 4.0% - 7.7% | 5.85% |
| WACC | 6.2% - 9.4% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.55 | 0.79 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 9.5% |
| Tax rate | 17.7% | 18.1% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 7.7% |
| After-tax WACC | 6.2% | 9.4% |
| Selected WACC | 7.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 000590.KS | CS Holdings Co Ltd | 0.01 | 0.42 | 0.42 |
| 007530.KQ | Youngsin Metal Industrial | 0.95 | 0.32 | 0.18 |
| 010660.KS | Hwacheon Machinery Co Ltd | 0 | 0.16 | 0.16 |
| 015590.KS | Curo Co Ltd | 0.35 | -0.67 | -0.52 |
| 016920.KQ | Cas | 1.75 | 0.31 | 0.13 |
| 036560.KQ | Young Poong Precision Corp | 0.16 | 0.72 | 0.63 |
| 039610.KQ | HS Valve Co Ltd | 0.23 | 0.89 | 0.74 |
| 049430.KQ | Komelon Corp | 0 | 1.14 | 1.14 |
| 054950.KQ | JVM Co Ltd | 0.1 | 0.9 | 0.83 |
| 099440.KQ | Smec Co Ltd | 0.63 | 1.18 | 0.78 |
| Low | High | |
| Unlevered beta | 0.32 | 0.68 |
| Relevered beta | 0.33 | 0.69 |
| Adjusted relevered beta | 0.55 | 0.79 |
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.