037350.KQ WACC - Weighted Average Cost of Capital
The WACC of Sungdo Engineering & Construction (037350.KQ) is 6.6%.
| Range | Selected | |
| Cost of equity | 7.4% - 11.7% | 9.55% |
| Tax rate | 25.7% - 26.9% | 26.3% |
| Cost of debt | 5.3% - 6.2% | 5.75% |
| WACC | 5.5% - 7.7% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.75 | 1.11 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.4% | 11.7% |
| Tax rate | 25.7% | 26.9% |
| Debt/Equity ratio | 1.27 | 1.27 |
| Cost of debt | 5.3% | 6.2% |
| After-tax WACC | 5.5% | 7.7% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 037350.KQ | Sungdo Engineering & Construction | 1.27 | 0.74 | 0.38 |
| 002460.KS | Hwasung Industrial Co Ltd | 2.07 | 0.26 | 0.1 |
| 011370.KQ | Seohan | 6.63 | 0.08 | 0.01 |
| 011560.KQ | Sebo Manufacturing Engineering Corp | 0.05 | 0.41 | 0.4 |
| 013360.KS | Ilsung Construction Co Ltd | 0.93 | -0.63 | -0.37 |
| 028100.KS | Dong-Ah Geological Engineering Co Ltd | 0.29 | 0.28 | 0.23 |
| 052690.KS | KEPCO Engineering & Construction Co Inc | 0 | 0.91 | 0.91 |
| 060370.KQ | KT Submarine Co Ltd | 0 | 1.16 | 1.16 |
| 076080.KQ | Welcron Hantec Co Ltd | 0.02 | 1.08 | 1.06 |
| 226360.KQ | EXT Co Ltd | 0 | 1.11 | 1.1 |
| Low | High | |
| Unlevered beta | 0.32 | 0.6 |
| Relevered beta | 0.63 | 1.16 |
| Adjusted relevered beta | 0.75 | 1.11 |
037350.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 037350.KQ:
cost_of_equity (9.55%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.75) + 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.