033230.KQ WACC - Weighted Average Cost of Capital
The WACC of Insung Information Co Ltd (033230.KQ) is 6.6%.
| Range | Selected | |
| Cost of equity | 6.2% - 8.5% | 7.35% |
| Tax rate | 25.4% - 39.5% | 32.45% |
| Cost of debt | 6.1% - 7.0% | 6.55% |
| WACC | 5.8% - 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 | 0.54 | 0.65 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 8.5% |
| Tax rate | 25.4% | 39.5% |
| Debt/Equity ratio | 0.35 | 0.35 |
| Cost of debt | 6.1% | 7.0% |
| After-tax WACC | 5.8% | 7.4% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 033230.KQ | Insung Information Co Ltd | 0.35 | 1.19 | 0.97 |
| 010280.KQ | SsangYong Information & Communications Corp | 0.71 | -0.16 | -0.11 |
| 012030.KS | DB Inc | 1.37 | 0.82 | 0.43 |
| 020180.KQ | Daishin Information | 0.63 | 0.17 | 0.12 |
| 031820.KS | Comtec Systems Co Ltd | 1.14 | 0.45 | 0.26 |
| 038680.KQ | S Net Systems Inc | 0.27 | 0.55 | 0.47 |
| 042500.KQ | RingNet Co Ltd | 0 | 0.35 | 0.35 |
| 045510.KQ | Zungwon En Sys Inc | 0.33 | -0.09 | -0.07 |
| 049480.KQ | Openbase Inc | 0.25 | 0.31 | 0.26 |
| 267850.KS | Asiana IDT Inc | 0.08 | 0.91 | 0.86 |
| Low | High | |
| Unlevered beta | 0.26 | 0.39 |
| Relevered beta | 0.31 | 0.48 |
| Adjusted relevered beta | 0.54 | 0.65 |
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 (0.54) + 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.