019680.KS WACC - Weighted Average Cost of Capital
The WACC of Daekyo Co Ltd (019680.KS) is 5.5%.
| Range | Selected | |
| Cost of equity | 5.6% - 7.4% | 6.5% |
| Tax rate | 17.6% - 34.6% | 26.1% |
| Cost of debt | 4.8% - 7.0% | 5.9% |
| WACC | 4.9% - 6.2% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.43 | 0.49 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 7.4% |
| Tax rate | 17.6% | 34.6% |
| Debt/Equity ratio | 0.74 | 0.74 |
| Cost of debt | 4.8% | 7.0% |
| After-tax WACC | 4.9% | 6.2% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 019680.KS | Daekyo Co Ltd | 0.74 | 0.68 | 0.44 |
| 040420.KQ | JLS Co Ltd | 0.06 | 0.1 | 0.09 |
| 067280.KQ | Multicampus Corp | 0.19 | 0.01 | 0.01 |
| 068930.KQ | Digital Daesung Co Ltd | 0.53 | 0.19 | 0.14 |
| 096240.KQ | Chungdahm Learning Inc | 0.77 | 0.45 | 0.29 |
| 1565.HK | Virscend Education Company Ltd | 3.47 | 0.33 | 0.09 |
| 1752.HK | Top Education Group Ltd | 0.55 | -0.38 | -0.27 |
| 215200.KQ | MegaStudyEdu Co Ltd | 0.12 | 0.39 | 0.36 |
| 339950.KQ | IBKimyoung Co Ltd | 0.13 | 0.1 | 0.09 |
| 9733.T | Nagase Brothers Inc | 0.53 | 0.25 | 0.18 |
| Low | High | |
| Unlevered beta | 0.09 | 0.15 |
| Relevered beta | 0.15 | 0.24 |
| Adjusted relevered beta | 0.43 | 0.49 |
019680.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 019680.KS:
cost_of_equity (6.50%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.43) + 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.