023590.KS WACC - Weighted Average Cost of Capital
The WACC of Daou Technology Inc (023590.KS) is 7.0%.
| Range | Selected | |
| Cost of equity | 7.9% - 11.6% | 9.75% |
| Tax rate | 26.4% - 27.7% | 27.05% |
| Cost of debt | 4.0% - 14.9% | 9.45% |
| WACC | 3.2% - 10.8% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.82 | 1.11 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.9% | 11.6% |
| Tax rate | 26.4% | 27.7% |
| Debt/Equity ratio | 21.22 | 21.22 |
| Cost of debt | 4.0% | 14.9% |
| After-tax WACC | 3.2% | 10.8% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 023590.KS | Daou Technology Inc | 21.22 | 0.62 | 0.04 |
| 001510.KS | SK Securities Co Ltd | 10.89 | 0.5 | 0.06 |
| 001720.KS | Shinyoung Securities Co Ltd | 5.63 | 0.19 | 0.04 |
| 001750.KS | Hanyang Securities Co Ltd | 3.73 | 0.34 | 0.09 |
| 003540.KS | Daishin Securities Co Ltd | 11.89 | 0.47 | 0.05 |
| 010050.KS | Woori Investment Bank Co Ltd | 1.41 | 0.82 | 0.4 |
| 030210.KS | KTB Investment & Securities Co Ltd | 18.12 | -0.04 | 0 |
| 030610.KS | Kyobo Securities Co Ltd | 5.76 | 0.58 | 0.11 |
| 078020.KQ | eBEST Investment & Securities Co Ltd | 18.99 | 0.53 | 0.04 |
| 190650.KQ | Korea Asset Investment Securities Co Ltd | 2.14 | 0.24 | 0.09 |
| Low | High | |
| Unlevered beta | 0.04 | 0.07 |
| Relevered beta | 0.73 | 1.16 |
| Adjusted relevered beta | 0.82 | 1.11 |
023590.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 023590.KS:
cost_of_equity (9.75%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.82) + 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.