009160.KS WACC - Weighted Average Cost of Capital
The WACC of SIMPAC Inc (009160.KS) is 6.1%.
| Range | Selected | |
| Cost of equity | 7.1% - 10.1% | 8.6% |
| Tax rate | 20.4% - 20.8% | 20.6% |
| Cost of debt | 4.0% - 5.3% | 4.65% |
| WACC | 5.1% - 7.0% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.69 | 0.88 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.1% | 10.1% |
| Tax rate | 20.4% | 20.8% |
| Debt/Equity ratio | 1.07 | 1.07 |
| Cost of debt | 4.0% | 5.3% |
| After-tax WACC | 5.1% | 7.0% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 009160.KS | SIMPAC Inc | 1.07 | 0.54 | 0.29 |
| 004380.KS | Samick THK Co Ltd | 0.78 | 1.47 | 0.91 |
| 015230.KS | Daechang Forging Co Ltd | 0.05 | 0.15 | 0.15 |
| 019210.KQ | YG-1 Co Ltd | 2.81 | 0.49 | 0.15 |
| 024880.KQ | KPF | 3.2 | 1 | 0.28 |
| 036890.KQ | Jinsung TEC | 0.43 | 0.47 | 0.35 |
| 044490.KQ | Taewoong Co Ltd | 0.31 | 0.73 | 0.59 |
| 064820.KQ | Cape Industries Ltd | 6.78 | 0.44 | 0.07 |
| 071970.KS | STX Heavy Industries Co Ltd | 0 | 0.75 | 0.75 |
| 137400.KQ | People & Technology Inc | 0.23 | 1.58 | 1.33 |
| Low | High | |
| Unlevered beta | 0.29 | 0.44 |
| Relevered beta | 0.54 | 0.82 |
| Adjusted relevered beta | 0.69 | 0.88 |
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.