039030.KQ WACC - Weighted Average Cost of Capital
The WACC of EO Technics Co Ltd (039030.KQ) is 12.4%.
| Range | Selected | |
| Cost of equity | 11.1% - 13.9% | 12.5% |
| Tax rate | 24.0% - 25.7% | 24.85% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 11.0% - 13.9% | 12.4% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 1.37 | 1.44 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.1% | 13.9% |
| Tax rate | 24.0% | 25.7% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 11.0% | 13.9% |
| Selected WACC | 12.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 039030.KQ | EO Technics Co Ltd | 0.01 | 1.86 | 1.86 |
| 036930.KQ | Jusung Engineering Co Ltd | 0.03 | 1.82 | 1.77 |
| 064760.KQ | Tokai Carbon Korea Co Ltd | 0 | 1.18 | 1.18 |
| 082270.KQ | GemVax & KAEL Co Ltd | 0.04 | 1.54 | 1.5 |
| 084370.KQ | Eugene Technology Co Ltd | 0.02 | 1.85 | 1.83 |
| 095610.KQ | Tes Co Ltd | 0.04 | 1.63 | 1.58 |
| 098460.KQ | Kohyoung Technology Inc | 0.02 | 1.6 | 1.58 |
| 101490.KQ | S&S Tech Corp | 0.02 | 1.79 | 1.76 |
| 131290.KQ | TSE Co Ltd | 0.09 | 1.43 | 1.34 |
| 183300.KQ | KoMiCo Ltd | 0.44 | 1.77 | 1.33 |
| Low | High | |
| Unlevered beta | 1.55 | 1.65 |
| Relevered beta | 1.55 | 1.66 |
| Adjusted relevered beta | 1.37 | 1.44 |
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 (12.50%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (1.37) + 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.