023800.KS WACC - Weighted Average Cost of Capital
The WACC of Inzi Controls Co Ltd (023800.KS) is 5.3%.
| Range | Selected | |
| Cost of equity | 8.4% - 11.3% | 9.85% |
| Tax rate | 25.5% - 29.4% | 27.45% |
| Cost of debt | 4.3% - 6.2% | 5.25% |
| WACC | 4.5% - 6.1% | 5.3% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.91 | 1.06 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.4% | 11.3% |
| Tax rate | 25.5% | 29.4% |
| Debt/Equity ratio | 3.07 | 3.07 |
| Cost of debt | 4.3% | 6.2% |
| After-tax WACC | 4.5% | 6.1% |
| Selected WACC | 5.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 023800.KS | Inzi Controls Co Ltd | 3.07 | 0.92 | 0.29 |
| 000300.KS | Dayou Plus Co Ltd | 0.01 | 0.76 | 0.76 |
| 004100.KS | Taeyang Metal Industrial Co Ltd | 1.99 | -0.06 | -0.02 |
| 013310.KQ | A-Jin Industry Co Ltd | 6.54 | 0.74 | 0.13 |
| 013870.KS | GMB Korea Corp | 2.5 | 0.42 | 0.15 |
| 016740.KS | Dual Co Ltd | 0.66 | 0.58 | 0.4 |
| 018500.KS | Dongwon Metal Co Ltd | 2.97 | 0.94 | 0.3 |
| 024840.KQ | KBI Metal Co Ltd | 1.38 | 1.13 | 0.57 |
| 024910.KQ | Kyungchang Industrial | 3.4 | 0.83 | 0.24 |
| 123410.KQ | Korea Fuel-Tech Corp | 0.69 | 1.09 | 0.73 |
| Low | High | |
| Unlevered beta | 0.27 | 0.34 |
| Relevered beta | 0.87 | 1.09 |
| Adjusted relevered beta | 0.91 | 1.06 |
023800.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 023800.KS:
cost_of_equity (9.85%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.91) + 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.