030520.KQ WACC - Weighted Average Cost of Capital
The WACC of Hancom Inc (030520.KQ) is 7.1%.
| Range | Selected | |
| Cost of equity | 6.6% - 8.5% | 7.55% |
| Tax rate | 38.5% - 44.3% | 41.4% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.2% - 8.0% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.6 | 0.64 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.6% | 8.5% |
| Tax rate | 38.5% | 44.3% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.2% | 8.0% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 030520.KQ | Hancom Inc | 0.09 | 0.37 | 0.35 |
| 047560.KQ | ESTsoft Corp | 0.17 | 0.53 | 0.48 |
| 051160.KQ | Gaeasoft | 0.27 | 0.71 | 0.62 |
| 078000.KS | Telcoware Co Ltd | 0 | 0.02 | 0.02 |
| 079970.KQ | ToBeSoft Co Ltd | 0.34 | 0.33 | 0.28 |
| 085810.KQ | Alticast Corp | 0.08 | 0.44 | 0.42 |
| 086960.KQ | Hancom MDS Inc | 0.33 | 1.62 | 1.36 |
| 108860.KQ | Selvas AI Inc | 0.05 | 0.88 | 0.85 |
| 131370.KQ | Rsupport Co Ltd | 0.01 | 0.4 | 0.4 |
| 138580.KQ | BusinessOn Communication Co Ltd | 0.04 | -0.11 | -0.11 |
| Low | High | |
| Unlevered beta | 0.38 | 0.44 |
| Relevered beta | 0.4 | 0.46 |
| Adjusted relevered beta | 0.6 | 0.64 |
030520.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 030520.KQ:
cost_of_equity (7.55%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.6) + 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.