001530.KS
DI Dong Il Corp
Price:  
40,900 
KRW
Volume:  
66,830
Korea, Republic of | Textiles, Apparel & Luxury Goods

001530.KS WACC - Weighted Average Cost of Capital

The WACC of DI Dong Il Corp (001530.KS) is 6.5%.

The Cost of Equity of DI Dong Il Corp (001530.KS) is 7.45%.
The Cost of Debt of DI Dong Il Corp (001530.KS) is 5.5%.

RangeSelected
Cost of equity6.1% - 8.8%7.45%
Tax rate26.0% - 27.8%26.9%
Cost of debt4.0% - 7.0%5.5%
WACC5.2% - 7.8%6.5%
WACC

001530.KS WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.520.69
Additional risk adjustments0.0%0.5%
Cost of equity6.1%8.8%
Tax rate26.0%27.8%
Debt/Equity ratio
0.390.39
Cost of debt4.0%7.0%
After-tax WACC5.2%7.8%
Selected WACC6.5%

001530.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 001530.KS:

cost_of_equity (7.45%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.52) + 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.