004870.KS WACC - Weighted Average Cost of Capital
The WACC of Tway Holdings Inc (004870.KS) is 12.7%.
| Range | Selected | |
| Cost of equity | 5.3% - 7.0% | 6.15% |
| Tax rate | 20.8% - 21.8% | 21.3% |
| Cost of debt | 7.0% - 296.8% | 151.9% |
| WACC | 5.3% - 20.1% | 12.7% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.38 | 0.43 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 7.0% |
| Tax rate | 20.8% | 21.8% |
| Debt/Equity ratio | 0.06 | 0.06 |
| Cost of debt | 7.0% | 296.8% |
| After-tax WACC | 5.3% | 20.1% |
| Selected WACC | 12.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 004870.KS | Tway Holdings Inc | 0.06 | 0.59 | 0.56 |
| 000910.KS | Union Corp | 1.84 | -0.09 | -0.04 |
| 001520.KS | Tongyang Inc | 3.41 | 0.77 | 0.21 |
| 003300.KS | Hanil Holdings Co Ltd | 1.93 | 0.16 | 0.06 |
| 004980.KS | Sungshin Cement Co Ltd | 2.15 | 0.22 | 0.08 |
| 038500.KQ | Sampyo Cement Co Ltd | 1.62 | 0.44 | 0.2 |
| 183190.KS | Asia Cement Co Ltd | 1.73 | 0.23 | 0.1 |
| 1847.HK | YCIH Green High Performance Concrete Co Ltd | 15.15 | 0.25 | 0.02 |
| 255220.KQ | SG Co Ltd | 0.28 | -0.06 | -0.05 |
| 300720.KS | Hanil Cement Co Ltd | 0.61 | 0.31 | 0.21 |
| Low | High | |
| Unlevered beta | 0.07 | 0.14 |
| Relevered beta | 0.07 | 0.15 |
| Adjusted relevered beta | 0.38 | 0.43 |
004870.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 004870.KS:
cost_of_equity (6.15%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.38) + 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.