036890.KQ
Jinsung TEC
Price:  
10,950 
KRW
Volume:  
59,763
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 8.2%.
The Cost of Debt of Jinsung TEC (036890.KQ) is 4.65%.

RangeSelected
Cost of equity6.6% - 9.8%8.2%
Tax rate27.7% - 28.6%28.15%
Cost of debt4.5% - 4.8%4.65%
WACC5.6% - 7.9%6.7%
WACC

036890.KQ WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.60.84
Additional risk adjustments0.0%0.5%
Cost of equity6.6%9.8%
Tax rate27.7%28.6%
Debt/Equity ratio
0.440.44
Cost of debt4.5%4.8%
After-tax WACC5.6%7.9%
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 (8.20%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.6) + 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.