001750.KS
Hanyang Securities Co Ltd
Price:  
13,370.00 
KRW
Volume:  
24,318.00
Korea, Republic of | Capital Markets
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001750.KS WACC - Weighted Average Cost of Capital

The WACC of Hanyang Securities Co Ltd (001750.KS) is 4.7%.

The Cost of Equity of Hanyang Securities Co Ltd (001750.KS) is 8.65%.
The Cost of Debt of Hanyang Securities Co Ltd (001750.KS) is 5.35%.

Range Selected
Cost of equity 6.40% - 10.90% 8.65%
Tax rate 28.50% - 29.90% 29.20%
Cost of debt 4.10% - 6.60% 5.35%
WACC 3.6% - 5.8% 4.7%
WACC

001750.KS WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.57 1
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.40% 10.90%
Tax rate 28.50% 29.90%
Debt/Equity ratio 4.51 4.51
Cost of debt 4.10% 6.60%
After-tax WACC 3.6% 5.8%
Selected WACC 4.7%

001750.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 001750.KS:

cost_of_equity (8.65%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.57) + 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.