020760.KS WACC - Weighted Average Cost of Capital
The WACC of Iljin Display Co Ltd (020760.KS) is 8.2%.
| Range | Selected | |
| Cost of equity | 7.3% - 13.9% | 10.6% |
| Tax rate | 5.4% - 7.0% | 6.2% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.0% - 10.4% | 8.2% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.73 | 1.44 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.3% | 13.9% |
| Tax rate | 5.4% | 7.0% |
| Debt/Equity ratio | 0.57 | 0.57 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.0% | 10.4% |
| Selected WACC | 8.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 020760.KS | Iljin Display Co Ltd | 0.57 | 0.13 | 0.08 |
| 052860.KQ | I&C Technology Co Ltd | 0.48 | 1.65 | 1.14 |
| 054450.KQ | TelechipsInc | 0.61 | 1.69 | 1.07 |
| 078350.KQ | Hanyang Digitech Co Ltd | 0.11 | 2.02 | 1.84 |
| 092600.KQ | NC& Co Ltd | 3.06 | 0.14 | 0.04 |
| 096640.KQ | Melfas Inc | 0.26 | 0.56 | 0.45 |
| 114810.KQ | IONES Co Ltd | 0.09 | 1.18 | 1.08 |
| 117670.KQ | Alpha Holdings Inc | 0.3 | 0.33 | 0.25 |
| 123860.KQ | Anapass Inc | 0.03 | 1.19 | 1.15 |
| 131760.KQ | Finetek Co Ltd | 0.78 | 0.52 | 0.3 |
| Low | High | |
| Unlevered beta | 0.39 | 1.08 |
| Relevered beta | 0.6 | 1.66 |
| Adjusted relevered beta | 0.73 | 1.44 |
020760.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 020760.KS:
cost_of_equity (10.60%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.73) + 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.