002700.KS
Shinil Electronics Co Ltd
Price:  
1,525.00 
KRW
Volume:  
161,313.00
Korea, Republic of | Household Durables
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002700.KS WACC - Weighted Average Cost of Capital

The WACC of Shinil Electronics Co Ltd (002700.KS) is 6.4%.

The Cost of Equity of Shinil Electronics Co Ltd (002700.KS) is 6.85%.
The Cost of Debt of Shinil Electronics Co Ltd (002700.KS) is 6.00%.

Range Selected
Cost of equity 5.80% - 7.90% 6.85%
Tax rate 26.40% - 31.10% 28.75%
Cost of debt 5.80% - 6.20% 6.00%
WACC 5.6% - 7.3% 6.4%
WACC

002700.KS WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.47 0.56
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.80% 7.90%
Tax rate 26.40% 31.10%
Debt/Equity ratio 0.19 0.19
Cost of debt 5.80% 6.20%
After-tax WACC 5.6% 7.3%
Selected WACC 6.4%

002700.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 002700.KS:

cost_of_equity (6.85%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.47) + 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.