003530.KS WACC - Weighted Average Cost of Capital
The WACC of Hanwha Investment&Securities Co Ltd (003530.KS) is 3.7%.
| Range | Selected | |
| Cost of equity | 7.5% - 11.5% | 9.5% |
| Tax rate | 27.4% - 31.5% | 29.45% |
| Cost of debt | 4.0% - 4.8% | 4.4% |
| WACC | 3.4% - 4.1% | 3.7% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.75 | 1.09 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 11.5% |
| Tax rate | 27.4% | 31.5% |
| Debt/Equity ratio | 8.85 | 8.85 |
| Cost of debt | 4.0% | 4.8% |
| After-tax WACC | 3.4% | 4.1% |
| Selected WACC | 3.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 003530.KS | Hanwha Investment&Securities Co Ltd | 8.85 | 0.69 | 0.09 |
| 001290.KS | Sangsangin Investment & Securities Co Ltd | 16.06 | 0.57 | 0.05 |
| 001500.KS | Hyundai Motor Securities Co Ltd | 16.93 | 0.42 | 0.03 |
| 003460.KS | Yuhwa Securities Co Ltd | 0.49 | 0.1 | 0.07 |
| 003470.KS | Yuanta Securities Korea Co Ltd | 13.01 | 0.76 | 0.07 |
| 010050.KS | Woori Investment Bank Co Ltd | 1.41 | 0.82 | 0.41 |
| 016360.KS | Samsung Securities Co Ltd | 4.51 | 0.6 | 0.14 |
| 039490.KS | Kiwoom Securities Co Ltd | 6.96 | 1.03 | 0.17 |
| 088980.KS | Macquarie Korea Infrastructure Fund | 0.07 | 0.23 | 0.22 |
| 531996.BO | Odyssey Corporation Ltd | 0.02 | 0.92 | 0.91 |
| Low | High | |
| Unlevered beta | 0.09 | 0.15 |
| Relevered beta | 0.63 | 1.13 |
| Adjusted relevered beta | 0.75 | 1.09 |
003530.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 003530.KS:
cost_of_equity (9.50%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.75) + 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.