023000.KS WACC - Weighted Average Cost of Capital
The WACC of SamwonSteel Co Ltd (023000.KS) is 6.3%.
| Range | Selected | |
| Cost of equity | 7.2% - 11.4% | 9.3% |
| Tax rate | 23.3% - 23.5% | 23.4% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.1% - 7.4% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.7 | 1.08 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.2% | 11.4% |
| Tax rate | 23.3% | 23.5% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.1% | 7.4% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 023000.KS | SamwonSteel Co Ltd | 1.01 | 0.32 | 0.18 |
| 001080.KS | Manho Rope & Wire Ltd | 0.01 | -0.42 | -0.42 |
| 008420.KS | Moonbae Steel Co Ltd | 0.41 | 0.88 | 0.67 |
| 012160.KS | YoungWire Co Ltd | 7.06 | 0.86 | 0.13 |
| 012620.KQ | Wonil Special Steel | 2.24 | 0.2 | 0.07 |
| 032560.KS | Hwang Kum Steel & Technology Co Ltd | 0.49 | 0.6 | 0.44 |
| 048470.KQ | Dae Dong Steel Co Ltd | 0.1 | 1.09 | 1.01 |
| 053260.KQ | Keum Kang Steel Co Ltd | 0.1 | 0.8 | 0.74 |
| 058730.KS | Development Advance Solution Co Ltd | 2.12 | 0.2 | 0.07 |
| 060380.KQ | Dongyang S Tec Co Ltd | 1.2 | 1.16 | 0.6 |
| 071090.KS | Hi Steel Co Ltd | 0.9 | 1.72 | 1.02 |
| Low | High | |
| Unlevered beta | 0.18 | 0.6 |
| Relevered beta | 0.55 | 1.12 |
| Adjusted relevered beta | 0.7 | 1.08 |
023000.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 023000.KS:
cost_of_equity (9.30%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.7) + 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.