036890.KQ
Jinsung TEC
Price:  
10,700.00 
KRW
Volume:  
33,034.00
Korea, Republic of | Machinery
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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 8.20%.
The Cost of Debt of Jinsung TEC (036890.KQ) is 4.65%.

Range Selected
Cost of equity 6.60% - 9.80% 8.20%
Tax rate 27.70% - 28.60% 28.15%
Cost of debt 4.50% - 4.80% 4.65%
WACC 5.6% - 7.9% 6.7%
WACC

036890.KQ WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.6 0.84
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.60% 9.80%
Tax rate 27.70% 28.60%
Debt/Equity ratio 0.44 0.44
Cost of debt 4.50% 4.80%
After-tax WACC 5.6% 7.9%
Selected WACC 6.7%

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.