009160.KS
SIMPAC Inc
Price:  
4,900 
KRW
Volume:  
180,947
Korea, Republic of | Machinery

009160.KS WACC - Weighted Average Cost of Capital

The WACC of SIMPAC Inc (009160.KS) is 6.1%.

The Cost of Equity of SIMPAC Inc (009160.KS) is 8.6%.
The Cost of Debt of SIMPAC Inc (009160.KS) is 4.65%.

RangeSelected
Cost of equity7.1% - 10.1%8.6%
Tax rate20.4% - 20.8%20.6%
Cost of debt4.0% - 5.3%4.65%
WACC5.1% - 7.0%6.1%
WACC

009160.KS WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.690.88
Additional risk adjustments0.0%0.5%
Cost of equity7.1%10.1%
Tax rate20.4%20.8%
Debt/Equity ratio
1.071.07
Cost of debt4.0%5.3%
After-tax WACC5.1%7.0%
Selected WACC6.1%

009160.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 009160.KS:

cost_of_equity (8.60%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.69) + 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.