004100.KS
Taeyang Metal Industrial Co Ltd
Price:  
2,285.00 
KRW
Volume:  
233,351.00
Korea, Republic of | Auto Components
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004100.KS WACC - Weighted Average Cost of Capital

The WACC of Taeyang Metal Industrial Co Ltd (004100.KS) is 7.6%.

The Cost of Equity of Taeyang Metal Industrial Co Ltd (004100.KS) is 7.35%.
The Cost of Debt of Taeyang Metal Industrial Co Ltd (004100.KS) is 10.25%.

Range Selected
Cost of equity 5.90% - 8.80% 7.35%
Tax rate 25.00% - 25.00% 25.00%
Cost of debt 5.60% - 14.90% 10.25%
WACC 4.7% - 10.4% 7.6%
WACC

004100.KS WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.49 0.69
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.90% 8.80%
Tax rate 25.00% 25.00%
Debt/Equity ratio 2.17 2.17
Cost of debt 5.60% 14.90%
After-tax WACC 4.7% 10.4%
Selected WACC 7.6%

004100.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 004100.KS:

cost_of_equity (7.35%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.49) + 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.