001740.KS
SK Networks Co Ltd
Price:  
4,190.00 
KRW
Volume:  
186,150.00
Korea, Republic of | Trading Companies & Distributors
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001740.KS WACC - Weighted Average Cost of Capital

The WACC of SK Networks Co Ltd (001740.KS) is 7.5%.

The Cost of Equity of SK Networks Co Ltd (001740.KS) is 8.45%.
The Cost of Debt of SK Networks Co Ltd (001740.KS) is 9.45%.

Range Selected
Cost of equity 7.40% - 9.50% 8.45%
Tax rate 25.00% - 25.00% 25.00%
Cost of debt 4.00% - 14.90% 9.45%
WACC 4.4% - 10.6% 7.5%
WACC

001740.KS WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.74 0.79
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.40% 9.50%
Tax rate 25.00% 25.00%
Debt/Equity ratio 2.19 2.19
Cost of debt 4.00% 14.90%
After-tax WACC 4.4% 10.6%
Selected WACC 7.5%

001740.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 001740.KS:

cost_of_equity (8.45%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.74) + 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.