008560.KS WACC - Weighted Average Cost of Capital
The WACC of Meritz Securities Co Ltd (008560.KS) is 4.0%.
| Range | Selected | |
| Cost of equity | 9.6% - 16.0% | 12.8% |
| Tax rate | 25.9% - 26.4% | 26.15% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 3.6% - 4.5% | 4.0% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 1.12 | 1.75 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.6% | 16.0% |
| Tax rate | 25.9% | 26.4% |
| Debt/Equity ratio | 9.88 | 9.88 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 3.6% | 4.5% |
| Selected WACC | 4.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 008560.KS | Meritz Securities Co Ltd | 9.88 | 0.91 | 0.11 |
| 001270.KS | Bookook Securities Co Ltd | 0.67 | 0.92 | 0.62 |
| 001720.KS | Shinyoung Securities Co Ltd | 4.24 | 0.67 | 0.16 |
| 003540.KS | Daishin Securities Co Ltd | 8.63 | 0.83 | 0.11 |
| 010050.KS | Woori Investment Bank Co Ltd | 1.41 | 0.82 | 0.4 |
| 023590.KS | Daou Technology Inc | 14.8 | 1.12 | 0.09 |
| 071050.KS | Korea Investment Holdings Co Ltd | 8.07 | 1.25 | 0.18 |
| 078020.KQ | eBEST Investment & Securities Co Ltd | 14.6 | 1.12 | 0.1 |
| 601688.SS | Huatai Securities Co Ltd | 1.82 | 1.51 | 0.65 |
| 8473.T | SBI Holdings Inc | 3.3 | 1.27 | 0.37 |
| Low | High | |
| Unlevered beta | 0.14 | 0.26 |
| Relevered beta | 1.18 | 2.12 |
| Adjusted relevered beta | 1.12 | 1.75 |
008560.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 008560.KS:
cost_of_equity (12.80%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (1.12) + 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.