007530.KQ WACC - Weighted Average Cost of Capital
The WACC of Youngsin Metal Industrial (007530.KQ) is 6.3%.
| Range | Selected | |
| Cost of equity | 6.9% - 9.1% | 8% |
| Tax rate | 19.2% - 32.1% | 25.65% |
| Cost of debt | 4.4% - 8.3% | 6.35% |
| WACC | 5.3% - 7.4% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.66 | 0.74 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.9% | 9.1% |
| Tax rate | 19.2% | 32.1% |
| Debt/Equity ratio | 0.95 | 0.95 |
| Cost of debt | 4.4% | 8.3% |
| After-tax WACC | 5.3% | 7.4% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 007530.KQ | Youngsin Metal Industrial | 0.95 | 0.28 | 0.16 |
| 000590.KS | CS Holdings Co Ltd | 0.01 | 0.34 | 0.34 |
| 008470.KQ | Booster Co Ltd | 0.05 | 0.22 | 0.21 |
| 010240.KQ | Heungkuk Metaltech Co Ltd | 0.07 | 0.38 | 0.36 |
| 010660.KS | Hwacheon Machinery Co Ltd | 0 | 0.06 | 0.06 |
| 016920.KQ | Cas | 1.71 | 0.33 | 0.14 |
| 048770.KQ | TPC Mechatronics Corp | 1.23 | 1.19 | 0.6 |
| 085310.KS | NK Co Ltd | 0.17 | 0.36 | 0.32 |
| 099440.KQ | Smec Co Ltd | 0.57 | 1.1 | 0.76 |
| 145210.KS | Saehwa IMC Co Ltd | 1.06 | 0.93 | 0.5 |
| Low | High | |
| Unlevered beta | 0.28 | 0.35 |
| Relevered beta | 0.49 | 0.61 |
| Adjusted relevered beta | 0.66 | 0.74 |
007530.KQ'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 007530.KQ:
cost_of_equity (8.00%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.66) + 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.