007610.KS
Seondo Electric Co Ltd
Price:  
2,975.00 
KRW
Volume:  
213,829.00
Korea, Republic of | Electrical Equipment
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007610.KS WACC - Weighted Average Cost of Capital

The WACC of Seondo Electric Co Ltd (007610.KS) is 8.6%.

The Cost of Equity of Seondo Electric Co Ltd (007610.KS) is 10.90%.
The Cost of Debt of Seondo Electric Co Ltd (007610.KS) is 6.05%.

Range Selected
Cost of equity 8.40% - 13.40% 10.90%
Tax rate 7.00% - 12.20% 9.60%
Cost of debt 5.10% - 7.00% 6.05%
WACC 6.9% - 10.4% 8.6%
WACC

007610.KS WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.92 1.37
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.40% 13.40%
Tax rate 7.00% 12.20%
Debt/Equity ratio 0.72 0.72
Cost of debt 5.10% 7.00%
After-tax WACC 6.9% 10.4%
Selected WACC 8.6%

007610.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 007610.KS:

cost_of_equity (10.90%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.92) + 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.