033230.KQ WACC - Weighted Average Cost of Capital

The WACC of Insung Information Co Ltd (033230.KQ) is 6.6%.

The Cost of Equity of Insung Information Co Ltd (033230.KQ) is 7.35%.

The Cost of Debt of Insung Information Co Ltd (033230.KQ) is 6.55%.

	Range	Selected
Cost of equity	6.30% - 8.40%	7.35%
Tax rate	25.40% - 39.50%	32.45%
Cost of debt	6.10% - 7.00%	6.55%
WACC	5.8% - 7.3%	6.6%

WACC

033230.KQ WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.55	0.63

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.30%	8.40%

Tax rate	25.40%	39.50%
Debt/Equity ratio	0.34	0.34
Cost of debt	6.10%	7.00%

After-tax WACC	5.8%	7.3%


Selected WACC	6.6%

033230.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 033230.KQ:

cost_of_equity (7.35%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.55) + 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.