009150.KS WACC - Weighted Average Cost of Capital
The WACC of Samsung Electro-Mechanics Co Ltd (009150.KS) is 8.9%.
| Range | Selected | |
| Cost of equity | 8.1% - 11.2% | 9.65% |
| Tax rate | 16.1% - 18.5% | 17.3% |
| Cost of debt | 4.5% - 7.0% | 5.75% |
| WACC | 7.4% - 10.4% | 8.9% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.86 | 1.04 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.1% | 11.2% |
| Tax rate | 16.1% | 18.5% |
| Debt/Equity ratio | 0.17 | 0.17 |
| Cost of debt | 4.5% | 7.0% |
| After-tax WACC | 7.4% | 10.4% |
| Selected WACC | 8.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 009150.KS | Samsung Electro-Mechanics Co Ltd | 0.17 | 1.12 | 0.98 |
| 008060.KS | Daeduck Co Ltd | 0.11 | 0.3 | 0.28 |
| 011070.KS | LG Innotek Co Ltd | 0.77 | 1.22 | 0.74 |
| 020150.KS | Iljin Materials Co Ltd | 0.14 | 1.67 | 1.5 |
| 036710.KQ | Simmtech Holdings Co Ltd | 2.84 | 1.44 | 0.43 |
| 049070.KQ | Intops Co Ltd | 0.11 | 1.6 | 1.46 |
| 066970.KQ | L&F Co Ltd | 0.17 | 1.77 | 1.55 |
| 090460.KQ | BH Co Ltd | 0.28 | 0.82 | 0.67 |
| 091700.KQ | Partron Co Ltd | 0.11 | 0.46 | 0.42 |
| 097520.KQ | MCNEX Co Ltd | 0.1 | 0.98 | 0.9 |
| Low | High | |
| Unlevered beta | 0.71 | 0.93 |
| Relevered beta | 0.79 | 1.06 |
| Adjusted relevered beta | 0.86 | 1.04 |
009150.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 009150.KS:
cost_of_equity (9.65%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.86) + 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.