The WACC of DI Dong Il Corp (001530.KS) is 6.5%.
Range | Selected | |
Cost of equity | 6.1% - 8.8% | 7.45% |
Tax rate | 26.0% - 27.8% | 26.9% |
Cost of debt | 4.0% - 7.0% | 5.5% |
WACC | 5.2% - 7.8% | 6.5% |
Category | Low | High |
Long-term bond rate | 3.1% | 3.6% |
Equity market risk premium | 5.8% | 6.8% |
Adjusted beta | 0.52 | 0.69 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.1% | 8.8% |
Tax rate | 26.0% | 27.8% |
Debt/Equity ratio | 0.39 | 0.39 |
Cost of debt | 4.0% | 7.0% |
After-tax WACC | 5.2% | 7.8% |
Selected WACC | 6.5% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
001530.KS | DI Dong Il Corp | 0.39 | -0.02 | -0.01 |
000050.KS | Kyungbang Ltd | 1.04 | 0.73 | 0.41 |
000950.KS | Chonbang Co Ltd | 0.54 | 0.68 | 0.49 |
001070.KS | Taihan Textile Co Ltd | 1.25 | 0.41 | 0.21 |
002170.KS | Samyang Tongsang Ltd | 0 | 0.44 | 0.44 |
003830.KS | Daehan Synthetic Fiber Co Ltd | 0.01 | 0.46 | 0.45 |
011300.KS | Seongan Co Ltd | 0.87 | 0.21 | 0.13 |
035150.KS | Baiksan Co Ltd | 0.37 | 0.59 | 0.46 |
079980.KS | Huvis Corp | 3.09 | 0.76 | 0.23 |
104480.KQ | TK Chemical Corp | 1.7 | 0.31 | 0.14 |
Low | High | |
Unlevered beta | 0.22 | 0.42 |
Relevered beta | 0.28 | 0.54 |
Adjusted relevered beta | 0.52 | 0.69 |
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.