012800.KS WACC - Weighted Average Cost of Capital
The WACC of Daechang Co Ltd (012800.KS) is 5.9%.
| Range | Selected | |
| Cost of equity | 6.8% - 14.3% | 10.55% |
| Tax rate | 23.4% - 30.3% | 26.85% |
| Cost of debt | 4.2% - 8.3% | 6.25% |
| WACC | 4.0% - 7.7% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.63 | 1.5 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 14.3% |
| Tax rate | 23.4% | 30.3% |
| Debt/Equity ratio | 3.43 | 3.43 |
| Cost of debt | 4.2% | 8.3% |
| After-tax WACC | 4.0% | 7.7% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 012800.KS | Daechang Co Ltd | 3.43 | 1.72 | 0.5 |
| 005810.KS | Poongsan Holdings Corp | 0.16 | 0.88 | 0.79 |
| 010130.KS | Korea Zinc Inc | 0.29 | 0.05 | 0.04 |
| 014280.KS | Kumkang Kind Co Ltd | 3.81 | 0.25 | 0.07 |
| 019440.KS | SeAH Special Steel Co Ltd | 1.84 | 0.31 | 0.13 |
| 021050.KS | Seowon Co Ltd | 8.86 | 0.95 | 0.13 |
| 025820.KS | Leeku Industrial Co Ltd | 0.88 | 1.35 | 0.83 |
| 060480.KQ | Kukil Metal Co Ltd | 0.05 | 0.53 | 0.51 |
| 084010.KS | Daehan Steel Co Ltd | 0.1 | 0.05 | 0.05 |
| 103140.KS | Poongsan Corp | 0.51 | 1.16 | 0.85 |
| Low | High | |
| Unlevered beta | 0.13 | 0.5 |
| Relevered beta | 0.45 | 1.75 |
| Adjusted relevered beta | 0.63 | 1.5 |
012800.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 012800.KS:
cost_of_equity (10.55%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.63) + 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.