017510.KQ WACC - Weighted Average Cost of Capital
The WACC of Semyung Electric Machinery (017510.KQ) is 8.3%.
| Range | Selected | |
| Cost of equity | 10.7% - 15.2% | 12.95% |
| Tax rate | 10.7% - 13.1% | 11.9% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.1% - 9.5% | 8.3% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 1.31 | 1.63 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.7% | 15.2% |
| Tax rate | 10.7% | 13.1% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.1% | 9.5% |
| Selected WACC | 8.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 017510.KQ | Semyung Electric Machinery | 1.05 | 1.09 | 0.57 |
| 001210.KS | Kumho Electric Co Ltd | 0.17 | 1.16 | 1.01 |
| 019990.KQ | Enertork Ltd | 0.05 | 0.68 | 0.65 |
| 024810.KQ | Ehwa Technologies Information Co Ltd | 0.12 | 1.98 | 1.8 |
| 027040.KQ | Seoul Electronics & Telecom | 1.77 | 0.94 | 0.37 |
| 033100.KQ | Cheryong Electric Co Ltd | 0 | 1.96 | 1.95 |
| 033200.KQ | Moatech Co Ltd | 0 | 0.3 | 0.3 |
| 043200.KQ | Paru Co Ltd | 0.35 | 1.54 | 1.18 |
| 147830.KQ | Cheryong Industrial Co Ltd | 0 | 1.06 | 1.06 |
| 294630.KQ | SuNam Co Ltd | 0.03 | 0.88 | 0.86 |
| 307180.KQ | Il Science Co Ltd | 1.18 | 0.85 | 0.42 |
| Low | High | |
| Unlevered beta | 0.65 | 1.01 |
| Relevered beta | 1.46 | 1.94 |
| Adjusted relevered beta | 1.31 | 1.63 |
017510.KQ'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 017510.KQ:
cost_of_equity (12.95%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (1.31) + 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.