022100.KQ WACC - Weighted Average Cost of Capital
The WACC of Posco ICT Co Ltd (022100.KQ) is 10.2%.
| Range | Selected | |
| Cost of equity | 9.1% - 11.3% | 10.2% |
| Tax rate | 20.7% - 24.7% | 22.7% |
| Cost of debt | 4.6% - 7.7% | 6.15% |
| WACC | 9.1% - 11.3% | 10.2% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 6.2% | 7.2% |
| Adjusted beta | 0.84 | 0.89 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.1% | 11.3% |
| Tax rate | 20.7% | 24.7% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.6% | 7.7% |
| After-tax WACC | 9.1% | 11.3% |
| Selected WACC | 10.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 022100.KQ | Posco ICT Co Ltd | 0 | 2.5 | 2.5 |
| 012030.KS | DB Inc | 1.37 | 0.82 | 0.4 |
| 020180.KQ | Daishin Information | 0.63 | 0.17 | 0.11 |
| 031820.KS | Comtec Systems Co Ltd | 1.14 | 0.45 | 0.24 |
| 033230.KQ | Insung Information Co Ltd | 0.35 | 1.19 | 0.94 |
| 035510.KS | Shinsegae Information & Communication Inc | 0.04 | 0.64 | 0.62 |
| 038680.KQ | S Net Systems Inc | 0.27 | 0.55 | 0.46 |
| 124500.KQ | ITCen Co Ltd | 1.01 | 0.79 | 0.45 |
| 267850.KS | Asiana IDT Inc | 0.08 | 0.91 | 0.86 |
| 286940.KS | Lotte Data Communication Co | 0.69 | 1.49 | 0.98 |
| 307950.KS | Hyundai Autoever Corp | 0.06 | 1.05 | 1 |
| Low | High | |
| Unlevered beta | 0.46 | 0.86 |
| Relevered beta | 0.76 | 0.84 |
| Adjusted relevered beta | 0.84 | 0.89 |
022100.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 022100.KQ:
cost_of_equity (10.20%) = risk_free_rate (4.15%) + equity_risk_premium (6.70%) * adjusted_beta (0.84) + 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.