004690.KS WACC - Weighted Average Cost of Capital
The WACC of Samchully Co Ltd (004690.KS) is 5.9%.
| Range | Selected | |
| Cost of equity | 8.5% - 14.2% | 11.35% |
| Tax rate | 17.3% - 22.5% | 19.9% |
| Cost of debt | 4.0% - 6.2% | 5.1% |
| WACC | 4.6% - 7.1% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.93 | 1.49 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.5% | 14.2% |
| Tax rate | 17.3% | 22.5% |
| Debt/Equity ratio | 3.07 | 3.07 |
| Cost of debt | 4.0% | 6.2% |
| After-tax WACC | 4.6% | 7.1% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 004690.KS | Samchully Co Ltd | 3.07 | 0.39 | 0.11 |
| 015350.KS | Busan City Gas Co Ltd | 0 | 0.37 | 0.37 |
| 015360.KS | Yesco Holdings Co Ltd | 0.93 | 0.17 | 0.1 |
| 016710.KS | Daesung Holdings Co Ltd | 1.86 | 0.56 | 0.22 |
| 017390.KS | Seoul City Gas Co Ltd | 0.28 | 0.34 | 0.28 |
| 267290.KS | Kyungdong City Gas Co Ltd | 0.16 | 0.21 | 0.19 |
| 600635.SS | Shanghai Dazhong Public Utilities Group Co Ltd | 0.7 | 1.07 | 0.68 |
| 603053.SS | Chengdu Gas Group Co Ltd | 0.03 | 0.76 | 0.74 |
| GSPL.NS | Gujarat State Petronet Ltd | 0.01 | 0.91 | 0.91 |
| GUJGASLTD.NS | Gujarat Gas Ltd | 0 | 1.07 | 1.07 |
| Low | High | |
| Unlevered beta | 0.26 | 0.49 |
| Relevered beta | 0.9 | 1.73 |
| Adjusted relevered beta | 0.93 | 1.49 |
004690.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 004690.KS:
cost_of_equity (11.35%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.93) + 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.