The WACC of Daeho P&C Co Ltd (021040.KQ) is 5.3%.
Range | Selected | |
Cost of equity | 6.8% - 9.6% | 8.2% |
Tax rate | 22.8% - 30.5% | 26.65% |
Cost of debt | 4.4% - 7.0% | 5.7% |
WACC | 4.4% - 6.3% | 5.3% |
Category | Low | High |
Long-term bond rate | 3.1% | 3.6% |
Equity market risk premium | 5.8% | 6.8% |
Adjusted beta | 0.64 | 0.81 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.8% | 9.6% |
Tax rate | 22.8% | 30.5% |
Debt/Equity ratio | 2.4 | 2.4 |
Cost of debt | 4.4% | 7.0% |
After-tax WACC | 4.4% | 6.3% |
Selected WACC | 5.3% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
021040.KQ | Daeho P&C Co Ltd | 2.19 | 0.63 | 0.24 |
001080.KS | Manho Rope & Wire Ltd | 0.01 | -0.38 | -0.38 |
002690.KS | Dong Il Steel MFG Co Ltd | 0 | 0.54 | 0.54 |
009190.KS | Daiyang Metal Co Ltd | 0.29 | 0.65 | 0.54 |
012160.KS | YoungWire Co Ltd | 7.13 | 0.83 | 0.13 |
037760.KQ | Cenit Co Ltd | 1.49 | 0.25 | 0.12 |
058730.KS | Development Advance Solution Co Ltd | 2.13 | 0.17 | 0.07 |
081150.KQ | Tplex Co Ltd | 0.5 | 0.42 | 0.31 |
090410.KQ | Duckshin Housing Co Ltd | 0.21 | 0.39 | 0.34 |
133820.KS | FineBesteel Co Ltd | 3.56 | 0.69 | 0.19 |
Low | High | |
Unlevered beta | 0.17 | 0.27 |
Relevered beta | 0.46 | 0.72 |
Adjusted relevered beta | 0.64 | 0.81 |
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.