010620.KS WACC - Weighted Average Cost of Capital
The WACC of Hyundai Mipo Dockyard Co Ltd (010620.KS) is 7.4%.
| Range | Selected | |
| Cost of equity | 6.3% - 8.7% | 7.5% |
| Tax rate | 23.2% - 26.5% | 24.85% |
| Cost of debt | 4.5% - 4.7% | 4.6% |
| WACC | 6.2% - 8.6% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.55 | 0.68 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 8.7% |
| Tax rate | 23.2% | 26.5% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 4.5% | 4.7% |
| After-tax WACC | 6.2% | 8.6% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 010620.KS | Hyundai Mipo Dockyard Co Ltd | 0.04 | 0.6 | 0.58 |
| 013570.KS | DY Corp | 1.76 | 0.75 | 0.32 |
| 017550.KS | Soosan Heavy Industries Co Ltd | 0.23 | 0.55 | 0.47 |
| 041440.KQ | Everdigm Corp | 0.27 | 0.27 | 0.22 |
| 064350.KS | Hyundai Rotem Co | 0.03 | 1.55 | 1.51 |
| 067170.KQ | Autech Corp | 6.33 | -0.01 | 0 |
| 075580.KS | Sejin Heavy Industries Co Ltd | 0.53 | 1.03 | 0.74 |
| 082740.KS | HSD Engine Co Ltd | 0.04 | 1.03 | 1 |
| 210540.KS | DY Power Corp | 0.05 | 0.32 | 0.31 |
| 267270.KS | Hyundai Construction Equipment Co Ltd | 0.55 | 0.33 | 0.23 |
| Low | High | |
| Unlevered beta | 0.31 | 0.51 |
| Relevered beta | 0.33 | 0.52 |
| Adjusted relevered beta | 0.55 | 0.68 |
010620.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 010620.KS:
cost_of_equity (7.50%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.55) + 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.