039030.KQ WACC - Weighted Average Cost of Capital

The WACC of EO Technics Co Ltd (039030.KQ) is 12.2%.

The Cost of Equity of EO Technics Co Ltd (039030.KQ) is 12.20%.

The Cost of Debt of EO Technics Co Ltd (039030.KQ) is 4.25%.

	Range	Selected
Cost of equity	10.80% - 13.60%	12.20%
Tax rate	24.00% - 25.70%	24.85%
Cost of debt	4.00% - 4.50%	4.25%
WACC	10.8% - 13.6%	12.2%

WACC

039030.KQ WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	1.33	1.4

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.80%	13.60%

Tax rate	24.00%	25.70%
Debt/Equity ratio	0.01	0.01
Cost of debt	4.00%	4.50%

After-tax WACC	10.8%	13.6%


Selected WACC	12.2%

039030.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 039030.KQ:

cost_of_equity (12.20%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (1.33) + 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.