034590.KS
Incheon City Gas Co Ltd
Price:  
24,700.00 
KRW
Volume:  
814.00
Korea, Republic of | Gas Utilities
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034590.KS WACC - Weighted Average Cost of Capital

The WACC of Incheon City Gas Co Ltd (034590.KS) is 7.1%.

The Cost of Equity of Incheon City Gas Co Ltd (034590.KS) is 7.80%.
The Cost of Debt of Incheon City Gas Co Ltd (034590.KS) is 4.25%.

Range Selected
Cost of equity 6.80% - 8.80% 7.80%
Tax rate 20.90% - 22.10% 21.50%
Cost of debt 4.00% - 4.50% 4.25%
WACC 6.2% - 8.0% 7.1%
WACC

034590.KS WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.63 0.69
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 8.80%
Tax rate 20.90% 22.10%
Debt/Equity ratio 0.17 0.17
Cost of debt 4.00% 4.50%
After-tax WACC 6.2% 8.0%
Selected WACC 7.1%

034590.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 034590.KS:

cost_of_equity (7.80%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.63) + 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.