034120.KS
Seoul Broadcasting System
Price:  
21,200 
KRW
Volume:  
378,207
Korea, Republic of | Media

034120.KS WACC - Weighted Average Cost of Capital

The WACC of Seoul Broadcasting System (034120.KS) is 7.0%.

The Cost of Equity of Seoul Broadcasting System (034120.KS) is 9.05%.
The Cost of Debt of Seoul Broadcasting System (034120.KS) is 6.15%.

RangeSelected
Cost of equity7.7% - 10.4%9.05%
Tax rate23.3% - 23.8%23.55%
Cost of debt4.0% - 8.3%6.15%
WACC5.5% - 8.5%7.0%
WACC

034120.KS WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.790.92
Additional risk adjustments0.0%0.5%
Cost of equity7.7%10.4%
Tax rate23.3%23.8%
Debt/Equity ratio
0.880.88
Cost of debt4.0%8.3%
After-tax WACC5.5%8.5%
Selected WACC7.0%

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 (9.05%) = 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.