003470.KS WACC - Weighted Average Cost of Capital
The WACC of Yuanta Securities Korea Co Ltd (003470.KS) is 4.3%.
| Range | Selected | |
| Cost of equity | 11.9% - 18.2% | 15.05% |
| Tax rate | 24.5% - 26.2% | 25.35% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 3.9% - 4.7% | 4.3% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 1.51 | 2.07 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.9% | 18.2% |
| Tax rate | 24.5% | 26.2% |
| Debt/Equity ratio | 9.64 | 9.64 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 3.9% | 4.7% |
| Selected WACC | 4.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 003470.KS | Yuanta Securities Korea Co Ltd | 9.64 | 0.99 | 0.12 |
| 001270.KS | Bookook Securities Co Ltd | 0.67 | 0.92 | 0.61 |
| 001290.KS | Sangsangin Investment & Securities Co Ltd | 9.67 | 1.46 | 0.18 |
| 001500.KS | Hyundai Motor Securities Co Ltd | 11.39 | 0.77 | 0.08 |
| 003460.KS | Yuhwa Securities Co Ltd | 0.39 | 0.38 | 0.29 |
| 003530.KS | Hanwha Investment&Securities Co Ltd | 5.79 | 1.17 | 0.22 |
| 010050.KS | Woori Investment Bank Co Ltd | 1.41 | 0.82 | 0.4 |
| 016360.KS | Samsung Securities Co Ltd | 3.34 | 0.73 | 0.21 |
| 039490.KS | Kiwoom Securities Co Ltd | 4.27 | 1.46 | 0.35 |
| 531996.BO | Odyssey Corporation Ltd | 0.07 | 0.92 | 0.87 |
| Low | High | |
| Unlevered beta | 0.21 | 0.31 |
| Relevered beta | 1.76 | 2.6 |
| Adjusted relevered beta | 1.51 | 2.07 |
003470.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 003470.KS:
cost_of_equity (15.05%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (1.51) + 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.