034120.KS WACC - Weighted Average Cost of Capital
The WACC of Seoul Broadcasting System (034120.KS) is 7.0%.
| Range | Selected | |
| Cost of equity | 7.7% - 10.4% | 9.05% |
| Tax rate | 23.3% - 23.8% | 23.55% |
| Cost of debt | 4.0% - 8.3% | 6.15% |
| WACC | 5.5% - 8.5% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.79 | 0.92 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.7% | 10.4% |
| Tax rate | 23.3% | 23.8% |
| Debt/Equity ratio | 0.88 | 0.88 |
| Cost of debt | 4.0% | 8.3% |
| After-tax WACC | 5.5% | 8.5% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 034120.KS | Seoul Broadcasting System | 0.88 | 0.27 | 0.16 |
| 036000.KQ | YeaRimDang Publishing Co Ltd | 0.08 | 0.86 | 0.81 |
| 039340.KQ | Korea Business News Co Ltd | 0.11 | -0.06 | -0.06 |
| 040300.KQ | YTN | 0 | 0.6 | 0.6 |
| 052220.KQ | iMBC Co Ltd | 0.02 | 0.49 | 0.48 |
| 058400.KQ | Korea New Network Corp | 0 | 0.32 | 0.32 |
| 101060.KS | SBS Media Holdings Co Ltd | 0.6 | 0.92 | 0.63 |
| 9405.T | Asahi Broadcasting Group Holdings Corp | 0.54 | 0.36 | 0.26 |
| BMTR.JK | Global Mediacom Tbk PT | 2.71 | 1.43 | 0.47 |
| NETWORK18.NS | Network18 Media & Investments Ltd | 0.35 | 1.48 | 1.17 |
| Low | High | |
| Unlevered beta | 0.41 | 0.53 |
| Relevered beta | 0.69 | 0.88 |
| Adjusted relevered beta | 0.79 | 0.92 |
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.