The WACC of Dasan Networks Inc (039560.KQ) is 5.8%.
Range | Selected | |
Cost of equity | 5.4% - 8.8% | 7.1% |
Tax rate | 13.8% - 20.6% | 17.2% |
Cost of debt | 4.6% - 7.0% | 5.8% |
WACC | 4.6% - 7.0% | 5.8% |
Category | Low | High |
Long-term bond rate | 3.1% | 3.6% |
Equity market risk premium | 5.8% | 6.8% |
Adjusted beta | 0.4 | 0.69 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.4% | 8.8% |
Tax rate | 13.8% | 20.6% |
Debt/Equity ratio | 1.31 | 1.31 |
Cost of debt | 4.6% | 7.0% |
After-tax WACC | 4.6% | 7.0% |
Selected WACC | 5.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
039560.KQ | Dasan Networks Inc | 1.31 | 0.11 | 0.05 |
005870.KS | Huneed Technologies | 0.01 | -0.39 | -0.39 |
050890.KQ | Solid Inc | 0.24 | 0.69 | 0.57 |
062970.KQ | PPI Inc | 0.19 | -0.8 | -0.7 |
078070.KQ | Ubiquoss Holdings Inc | 0.01 | 0.05 | 0.05 |
078890.KQ | KAON Media Co Ltd | 3.3 | 1.14 | 0.31 |
088800.KQ | Ace Technologies Corp | 0.29 | 0.85 | 0.69 |
091440.KQ | Telefield Inc | 0.88 | -0.92 | -0.53 |
115440.KQ | Woori Net Co Ltd | 0.38 | 0.3 | 0.23 |
178320.KQ | Seojin System Co Ltd | 0.7 | 0.57 | 0.36 |
Low | High | |
Unlevered beta | 0.05 | 0.26 |
Relevered beta | 0.1 | 0.54 |
Adjusted relevered beta | 0.4 | 0.69 |
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 039560.KQ:
cost_of_equity (7.10%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.4) + 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.