017900.KS
AUK Corp
Price:  
1,851 
KRW
Volume:  
149,480
Korea, Republic of | Semiconductors & Semiconductor Equipment

017900.KS WACC - Weighted Average Cost of Capital

The WACC of AUK Corp (017900.KS) is 8.1%.

The Cost of Equity of AUK Corp (017900.KS) is 8.15%.
The Cost of Debt of AUK Corp (017900.KS) is 4.25%.

RangeSelected
Cost of equity6.3% - 10.0%8.15%
Tax rate19.9% - 27.5%23.7%
Cost of debt4.0% - 4.5%4.25%
WACC6.3% - 10.0%8.1%
WACC

017900.KS WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.550.87
Additional risk adjustments0.0%0.5%
Cost of equity6.3%10.0%
Tax rate19.9%27.5%
Debt/Equity ratio
00
Cost of debt4.0%4.5%
After-tax WACC6.3%10.0%
Selected WACC8.1%

017900.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 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.