010950.KS WACC - Weighted Average Cost of Capital
The WACC of S-Oil Corp (010950.KS) is 9.1%.
| Range | Selected | |
| Cost of equity | 7.1% - 9.9% | 8.5% |
| Tax rate | 27.1% - 29.2% | 28.15% |
| Cost of debt | 4.0% - 23.1% | 13.55% |
| WACC | 4.7% - 13.6% | 9.1% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.69 | 0.85 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.1% | 9.9% |
| Tax rate | 27.1% | 29.2% |
| Debt/Equity ratio | 1.34 | 1.34 |
| Cost of debt | 4.0% | 23.1% |
| After-tax WACC | 4.7% | 13.6% |
| Selected WACC | 9.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 010950.KS | S-Oil Corp | 1.34 | 0.83 | 0.42 |
| 002960.KS | Hankook Shell Oil Co Ltd | 0 | 0.26 | 0.26 |
| 003650.KS | Michang Oil Ind Co Ltd | 0.3 | 0.09 | 0.08 |
| 060900.KQ | Daehan Green Power Corp | 0.23 | 0.13 | 0.11 |
| 078930.KS | GS Holdings Corp | 3.08 | 0.62 | 0.19 |
| 096770.KS | SK Innovation Co Ltd | 3.54 | 1.35 | 0.38 |
| 137950.KQ | JC Chemical Corp Ltd | 1.69 | 0.62 | 0.28 |
| ALD.AX | Ampol Ltd | 0.64 | 0.99 | 0.67 |
| MRPL.NS | Mangalore Refinery and Petrochemicals Ltd | 0.52 | 1.38 | 1 |
| TOP.BK | Thai Oil PCL | 2.86 | 1.56 | 0.51 |
| Low | High | |
| Unlevered beta | 0.27 | 0.4 |
| Relevered beta | 0.54 | 0.78 |
| Adjusted relevered beta | 0.69 | 0.85 |
010950.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 010950.KS:
cost_of_equity (8.50%) = 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.