019010.KQ WACC - Weighted Average Cost of Capital
The WACC of VenueG Co Ltd (019010.KQ) is 5.1%.
| Range | Selected | |
| Cost of equity | 6.9% - 9.1% | 8% |
| Tax rate | 24.2% - 26.2% | 25.2% |
| Cost of debt | 4.0% - 5.3% | 4.65% |
| WACC | 4.4% - 5.8% | 5.1% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.65 | 0.73 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.9% | 9.1% |
| Tax rate | 24.2% | 26.2% |
| Debt/Equity ratio | 1.78 | 1.78 |
| Cost of debt | 4.0% | 5.3% |
| After-tax WACC | 4.4% | 5.8% |
| Selected WACC | 5.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 019010.KQ | VenueG Co Ltd | 1.78 | 0.37 | 0.16 |
| 000679.SZ | Dalian Friendship Group Co Ltd | 0.18 | 0.59 | 0.52 |
| 004170.KS | Shinsegae Inc | 2.84 | 0.58 | 0.19 |
| 006370.KS | Daegu Department Store Co Ltd | 4.32 | 0.21 | 0.05 |
| 037710.KS | GwangjuShinsegae Co Ltd | 1.03 | 0.37 | 0.21 |
| 067830.KS | Savezone I&C Corp | 0.16 | 0.52 | 0.46 |
| 069960.KS | Hyundai Department Store Co Ltd | 1.37 | 0.41 | 0.2 |
| 97.HK | Henderson Investment Ltd | 1.55 | 0.49 | 0.23 |
| O9E.SI | Parkson Retail Asia Ltd | 2.5 | 0.87 | 0.3 |
| V2RETAIL.NS | V2 Retail Ltd | 0.13 | 0.7 | 0.64 |
| Low | High | |
| Unlevered beta | 0.2 | 0.26 |
| Relevered beta | 0.48 | 0.6 |
| Adjusted relevered beta | 0.65 | 0.73 |
019010.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 019010.KQ:
cost_of_equity (8.00%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.65) + 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.