004170.KS WACC - Weighted Average Cost of Capital
The WACC of Shinsegae Inc (004170.KS) is 5.3%.
| Range | Selected | |
| Cost of equity | 7.1% - 10.3% | 8.7% |
| Tax rate | 16.9% - 27.4% | 22.15% |
| Cost of debt | 4.0% - 6.7% | 5.35% |
| WACC | 4.3% - 6.2% | 5.3% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.69 | 0.92 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.1% | 10.3% |
| Tax rate | 16.9% | 27.4% |
| Debt/Equity ratio | 2.97 | 2.97 |
| Cost of debt | 4.0% | 6.7% |
| After-tax WACC | 4.3% | 6.2% |
| Selected WACC | 5.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 004170.KS | Shinsegae Inc | 2.97 | 0.56 | 0.17 |
| 006370.KS | Daegu Department Store Co Ltd | 4.11 | 0.13 | 0.03 |
| 019010.KQ | VenueG Co Ltd | 1.92 | 0.4 | 0.16 |
| 023530.KS | Lotte Shopping Co Ltd | 6.48 | 0.39 | 0.07 |
| 037710.KS | GwangjuShinsegae Co Ltd | 1.24 | 0.32 | 0.17 |
| 067830.KS | Savezone I&C Corp | 0.17 | 0.47 | 0.42 |
| 069960.KS | Hyundai Department Store Co Ltd | 1.49 | 0.35 | 0.17 |
| 3086.T | J.Front Retailing Co Ltd | 0.66 | 1.35 | 0.9 |
| 600694.SS | Dashang Co Ltd | 0.47 | 1.02 | 0.75 |
| 950170.KQ | JTC Inc | 0.54 | 0.74 | 0.53 |
| Low | High | |
| Unlevered beta | 0.17 | 0.27 |
| Relevered beta | 0.54 | 0.88 |
| Adjusted relevered beta | 0.69 | 0.92 |
004170.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 004170.KS:
cost_of_equity (8.70%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.69) + 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.