The WACC of AUK Corp (017900.KS) is 8.1%.
Range | Selected | |
Cost of equity | 6.3% - 10.0% | 8.15% |
Tax rate | 19.9% - 27.5% | 23.7% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 6.3% - 10.0% | 8.1% |
Category | Low | High |
Long-term bond rate | 3.1% | 3.6% |
Equity market risk premium | 5.8% | 6.8% |
Adjusted beta | 0.55 | 0.87 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.3% | 10.0% |
Tax rate | 19.9% | 27.5% |
Debt/Equity ratio | 0 | 0 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 6.3% | 10.0% |
Selected WACC | 8.1% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
017900.KS | AUK Corp | 0 | 0.5 | 0.5 |
020760.KS | Iljin Display Co Ltd | 0.57 | 0.13 | 0.09 |
054450.KQ | TelechipsInc | 0.61 | 1.69 | 1.14 |
073110.KQ | LMS Co Ltd | 1.29 | -0.08 | -0.04 |
080220.KQ | Jeju Semiconductor Corp | 0.04 | 1.64 | 1.59 |
089530.KQ | AT Semicon Co Ltd | 0.27 | 0 | 0 |
092220.KS | KEC Corp | 0.34 | 1.48 | 1.17 |
106240.KQ | Fine Technix Co Ltd | 2.24 | 0.08 | 0.03 |
114810.KQ | IONES Co Ltd | 0.09 | 1.18 | 1.1 |
153490.KQ | Wooree E&L Co Ltd | 0.27 | 0.73 | 0.6 |
Low | High | |
Unlevered beta | 0.33 | 0.8 |
Relevered beta | 0.33 | 0.81 |
Adjusted relevered beta | 0.55 | 0.87 |
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 017900.KS:
cost_of_equity (8.15%) = 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.