030790.KS WACC - Weighted Average Cost of Capital
The WACC of BK Tops Co Ltd (030790.KS) is 6.6%.
| Range | Selected | |
| Cost of equity | 6.6% - 8.7% | 7.65% |
| Tax rate | 25.0% - 25.0% | 25% |
| Cost of debt | 7.0% - 8.3% | 7.65% |
| WACC | 5.9% - 7.4% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.6 | 0.68 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.6% | 8.7% |
| Tax rate | 25.0% | 25.0% |
| Debt/Equity ratio | 1.16 | 1.16 |
| Cost of debt | 7.0% | 8.3% |
| After-tax WACC | 5.9% | 7.4% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 030790.KS | BK Tops Co Ltd | 1.16 | -0.27 | -0.15 |
| 010280.KQ | SsangYong Information & Communications Corp | 0.57 | 0.35 | 0.25 |
| 020180.KQ | Daishin Information | 0.66 | 0.25 | 0.17 |
| 045510.KQ | Zungwon En Sys Inc | 0.31 | 0.19 | 0.15 |
| 052460.KQ | Icraft Co Ltd | 0.48 | 1.3 | 0.96 |
| 053980.KQ | Osangjaiel Co Ltd | 0 | 0.65 | 0.65 |
| 094860.KQ | KornicGlory Co Ltd | 0.31 | 0.34 | 0.27 |
| 115500.KQ | Korea Computer & Systems Inc | 0 | 0.93 | 0.93 |
| 136540.KQ | Wins Co Ltd | 0 | 0.3 | 0.3 |
| 163730.KQ | Finger Inc | 0.02 | 0.02 | 0.01 |
| Low | High | |
| Unlevered beta | 0.22 | 0.28 |
| Relevered beta | 0.4 | 0.52 |
| Adjusted relevered beta | 0.6 | 0.68 |
030790.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 030790.KS:
cost_of_equity (7.65%) = 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.