008110.KS WACC - Weighted Average Cost of Capital
The WACC of Daidong Electronics Ltd (008110.KS) is 5.2%.
| Range | Selected | |
| Cost of equity | 5.8% - 8.4% | 7.1% |
| Tax rate | 30.0% - 38.5% | 34.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.7% - 5.7% | 5.2% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.47 | 0.64 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 8.4% |
| Tax rate | 30.0% | 38.5% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.7% | 5.7% |
| Selected WACC | 5.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 008110.KS | Daidong Electronics Ltd | 1.03 | -1.37 | -0.82 |
| 011230.KS | Samwha Electronics Co Ltd | 0.34 | 0.26 | 0.21 |
| 032960.KQ | Dongil Technology Ltd | 0.02 | 0.17 | 0.17 |
| 037950.KQ | Elcomtec Co Ltd | 0.04 | 0.07 | 0.07 |
| 059100.KQ | i-Components Co Ltd | 0.35 | 0.46 | 0.37 |
| 069330.KQ | UI Display Co Ltd | 0.53 | -0.33 | -0.24 |
| 082660.KQ | CosNine Co Ltd | 0.42 | 0.07 | 0.06 |
| 131400.KQ | Act Co Ltd (Daegu) | 0.04 | 1.48 | 1.44 |
| 187270.KQ | Shin Hwa Contech Co Ltd | 0.47 | 0.67 | 0.51 |
| 191410.KQ | Ryukil C&S Ltd | 1.26 | -0.49 | -0.27 |
| 193250.KQ | YJM Games Co Ltd | 0.16 | 1.07 | 0.97 |
| Low | High | |
| Unlevered beta | 0.07 | 0.21 |
| Relevered beta | 0.21 | 0.46 |
| Adjusted relevered beta | 0.47 | 0.64 |
008110.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 008110.KS:
cost_of_equity (7.10%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.47) + 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.