The WACC of Inscobee Inc (006490.KS) is 7.1%.
Range | Selected | |
Cost of equity | 5.7% - 9.2% | 7.45% |
Tax rate | 6.1% - 10.1% | 8.1% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 5.5% - 8.7% | 7.1% |
Category | Low | High |
Long-term bond rate | 3.1% | 3.6% |
Equity market risk premium | 5.8% | 6.8% |
Adjusted beta | 0.45 | 0.75 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.7% | 9.2% |
Tax rate | 6.1% | 10.1% |
Debt/Equity ratio | 0.11 | 0.11 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 5.5% | 8.7% |
Selected WACC | 7.1% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
006490.KS | Inscobee Inc | 0.11 | -0.05 | -0.05 |
030200.KS | KT Corp | 0.84 | -0.03 | -0.02 |
032640.KS | LG Uplus Corp | 1.15 | 0.23 | 0.11 |
036630.KQ | Sejong Telecom Inc | 1.36 | 1.16 | 0.52 |
093320.KQ | Kinx Inc | 0.15 | 0.22 | 0.19 |
300560.SZ | Zhong Fu Tong Group Co Ltd | 0.34 | 1.39 | 1.05 |
4390.T | IPS Inc | 0.33 | 1.33 | 1.02 |
7040.SR | Etihad Atheeb Telecommunication Company SJSC | 0.02 | 0.96 | 0.94 |
9416.T | Vision Inc | 0.01 | 0.66 | 0.66 |
TTLK.ME | Tattelekom PAO | 0 | -0.2 | -0.2 |
Low | High | |
Unlevered beta | 0.16 | 0.57 |
Relevered beta | 0.18 | 0.63 |
Adjusted relevered beta | 0.45 | 0.75 |
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 006490.KS:
cost_of_equity (7.45%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.45) + 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.