001820.KS WACC - Weighted Average Cost of Capital
The WACC of Samwha Capacitor Co Ltd (001820.KS) is 9.0%.
| Range | Selected | |
| Cost of equity | 7.9% - 10.4% | 9.15% |
| Tax rate | 16.7% - 18.6% | 17.65% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.8% - 10.3% | 9.0% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.82 | 0.92 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.9% | 10.4% |
| Tax rate | 16.7% | 18.6% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.8% | 10.3% |
| Selected WACC | 9.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 001820.KS | Samwha Capacitor Co Ltd | 0.01 | 1.6 | 1.58 |
| 025320.KQ | Synopex Inc | 0.06 | 1.36 | 1.31 |
| 026890.KS | Digital Power Communications Co Ltd | 0.01 | 0.25 | 0.25 |
| 033180.KS | Feelux Co Ltd | 1.87 | 1.49 | 0.59 |
| 052710.KQ | Amotech Co Ltd | 0.8 | 1.42 | 0.86 |
| 060720.KQ | KH Vatec Co Ltd | 0.26 | 0.99 | 0.82 |
| 078600.KQ | Daejoo Electronic Materials Co Ltd | 0.28 | 1.24 | 1.01 |
| 089980.KQ | Sang-A Frontec Co Ltd | 0.4 | 1.19 | 0.9 |
| 091120.KQ | EM-Tech Co Ltd | 0.67 | 0.62 | 0.4 |
| 097780.KQ | S-Mac Co Ltd | 0.03 | 0.51 | 0.5 |
| Low | High | |
| Unlevered beta | 0.72 | 0.88 |
| Relevered beta | 0.73 | 0.88 |
| Adjusted relevered beta | 0.82 | 0.92 |
001820.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 001820.KS:
cost_of_equity (9.15%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.82) + 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.