021040.KQ
Daeho P&C Co Ltd
Price:  
1,535 
KRW
Volume:  
9,275
Korea, Republic of | Metals & Mining

021040.KQ WACC - Weighted Average Cost of Capital

The WACC of Daeho P&C Co Ltd (021040.KQ) is 5.3%.

The Cost of Equity of Daeho P&C Co Ltd (021040.KQ) is 8.2%.
The Cost of Debt of Daeho P&C Co Ltd (021040.KQ) is 5.7%.

RangeSelected
Cost of equity6.8% - 9.6%8.2%
Tax rate22.8% - 30.5%26.65%
Cost of debt4.4% - 7.0%5.7%
WACC4.4% - 6.3%5.3%
WACC

021040.KQ WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.640.81
Additional risk adjustments0.0%0.5%
Cost of equity6.8%9.6%
Tax rate22.8%30.5%
Debt/Equity ratio
2.42.4
Cost of debt4.4%7.0%
After-tax WACC4.4%6.3%
Selected WACC5.3%

021040.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 021040.KQ:

cost_of_equity (8.20%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.64) + 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.