034120.KS
Seoul Broadcasting System
Price:  
22,800.00 
KRW
Volume:  
65,552.00
Korea, Republic of | Media
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034120.KS WACC - Weighted Average Cost of Capital

The WACC of Seoul Broadcasting System (034120.KS) is 7.2%.

The Cost of Equity of Seoul Broadcasting System (034120.KS) is 9.40%.
The Cost of Debt of Seoul Broadcasting System (034120.KS) is 6.15%.

Range Selected
Cost of equity 7.70% - 11.10% 9.40%
Tax rate 23.30% - 23.80% 23.55%
Cost of debt 4.00% - 8.30% 6.15%
WACC 5.5% - 8.9% 7.2%
WACC

034120.KS WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.79 1.03
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 11.10%
Tax rate 23.30% 23.80%
Debt/Equity ratio 0.86 0.86
Cost of debt 4.00% 8.30%
After-tax WACC 5.5% 8.9%
Selected WACC 7.2%

034120.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 034120.KS:

cost_of_equity (9.40%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.79) + 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.