036890.KQ
Jinsung TEC
Price:  
11,430 
KRW
Volume:  
611,949
Korea, Republic of | Machinery

036890.KQ WACC - Weighted Average Cost of Capital

The WACC of Jinsung TEC (036890.KQ) is 6.7%.

The Cost of Equity of Jinsung TEC (036890.KQ) is 8.15%.
The Cost of Debt of Jinsung TEC (036890.KQ) is 4.8%.

RangeSelected
Cost of equity6.7% - 9.6%8.15%
Tax rate27.7% - 28.6%28.15%
Cost of debt4.8% - 4.8%4.8%
WACC5.7% - 7.7%6.7%
WACC

036890.KQ WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.620.81
Additional risk adjustments0.0%0.5%
Cost of equity6.7%9.6%
Tax rate27.7%28.6%
Debt/Equity ratio
0.420.42
Cost of debt4.8%4.8%
After-tax WACC5.7%7.7%
Selected WACC6.7%

036890.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 036890.KQ:

cost_of_equity (8.15%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.62) + 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.