039560.KQ
Dasan Networks Inc
Price:  
3,065 
KRW
Volume:  
80,240
Korea, Republic of | Communications Equipment

039560.KQ WACC - Weighted Average Cost of Capital

The WACC of Dasan Networks Inc (039560.KQ) is 5.8%.

The Cost of Equity of Dasan Networks Inc (039560.KQ) is 7.1%.
The Cost of Debt of Dasan Networks Inc (039560.KQ) is 5.8%.

RangeSelected
Cost of equity5.4% - 8.8%7.1%
Tax rate13.8% - 20.6%17.2%
Cost of debt4.6% - 7.0%5.8%
WACC4.6% - 7.0%5.8%
WACC

039560.KQ WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.40.69
Additional risk adjustments0.0%0.5%
Cost of equity5.4%8.8%
Tax rate13.8%20.6%
Debt/Equity ratio
1.311.31
Cost of debt4.6%7.0%
After-tax WACC4.6%7.0%
Selected WACC5.8%

039560.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 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.