024910.KQ WACC - Weighted Average Cost of Capital
The WACC of Kyungchang Industrial (024910.KQ) is 7.2%.
| Range | Selected | |
| Cost of equity | 6.6% - 10.8% | 8.7% |
| Tax rate | 26.8% - 32.0% | 29.4% |
| Cost of debt | 4.6% - 14.9% | 9.75% |
| WACC | 4.1% - 10.3% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.61 | 0.99 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.6% | 10.8% |
| Tax rate | 26.8% | 32.0% |
| Debt/Equity ratio | 3.43 | 3.43 |
| Cost of debt | 4.6% | 14.9% |
| After-tax WACC | 4.1% | 10.3% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 024910.KQ | Kyungchang Industrial | 3.43 | 1.05 | 0.31 |
| 000300.KS | Dayou Plus Co Ltd | 0.01 | 0.76 | 0.76 |
| 004100.KS | Taeyang Metal Industrial Co Ltd | 1.96 | -0.3 | -0.13 |
| 013870.KS | GMB Korea Corp | 2.56 | 0.36 | 0.13 |
| 023800.KS | Inzi Controls Co Ltd | 3.1 | 0.92 | 0.29 |
| 024840.KQ | KBI Metal Co Ltd | 1.38 | 0.99 | 0.51 |
| 066590.KQ | Woosu AMS Co Ltd | 0.83 | 0.18 | 0.12 |
| 090080.KS | Pyung Hwa Industrial Co Ltd | 1.39 | -0.55 | -0.28 |
| 092200.KS | Dae-Il Corp | 1.92 | 0.67 | 0.29 |
| 143210.KS | Hands Corporation Ltd | 13.39 | 0.48 | 0.05 |
| Low | High | |
| Unlevered beta | 0.13 | 0.29 |
| Relevered beta | 0.42 | 0.99 |
| Adjusted relevered beta | 0.61 | 0.99 |
024910.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 024910.KQ:
cost_of_equity (8.70%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.61) + 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.