010620.KS
Hyundai Mipo Dockyard Co Ltd
Price:  
177,300.00 
KRW
Volume:  
348,107.00
Korea, Republic of | Machinery
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

010620.KS WACC - Weighted Average Cost of Capital

The WACC of Hyundai Mipo Dockyard Co Ltd (010620.KS) is 7.3%.

The Cost of Equity of Hyundai Mipo Dockyard Co Ltd (010620.KS) is 7.45%.
The Cost of Debt of Hyundai Mipo Dockyard Co Ltd (010620.KS) is 4.35%.

Range Selected
Cost of equity 6.50% - 8.40% 7.45%
Tax rate 23.20% - 26.50% 24.85%
Cost of debt 4.00% - 4.70% 4.35%
WACC 6.4% - 8.2% 7.3%
WACC

010620.KS WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.59 0.64
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.50% 8.40%
Tax rate 23.20% 26.50%
Debt/Equity ratio 0.04 0.04
Cost of debt 4.00% 4.70%
After-tax WACC 6.4% 8.2%
Selected WACC 7.3%

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 (7.45%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.59) + 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.