The WACC of HS Valve Co Ltd (039610.KQ) is 8.0%.
Range | Selected | |
Cost of equity | 7.4% - 10.5% | 8.95% |
Tax rate | 12.5% - 16.8% | 14.65% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 6.7% - 9.3% | 8.0% |
Category | Low | High |
Long-term bond rate | 3.1% | 3.6% |
Equity market risk premium | 5.8% | 6.8% |
Adjusted beta | 0.74 | 0.95 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.4% | 10.5% |
Tax rate | 12.5% | 16.8% |
Debt/Equity ratio | 0.23 | 0.23 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 6.7% | 9.3% |
Selected WACC | 8.0% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
039610.KQ | HS Valve Co Ltd | 0.23 | 0.87 | 0.73 |
001560.KS | Cheil Grinding Wheel Ind Co Ltd | 0 | 0.11 | 0.11 |
049430.KQ | Komelon Corp | 0 | 1.02 | 1.02 |
054540.KQ | Samyoung M Tek Co Ltd | 0.27 | 0.4 | 0.33 |
083660.KQ | CSA Cosmic Co Ltd | 0.08 | 0.9 | 0.84 |
086670.KQ | BMT Co Ltd | 1.22 | 0.71 | 0.35 |
096350.KQ | Daechang Solution Co Ltd | 0.9 | 0.87 | 0.49 |
101170.KQ | Woorim Machinery Co Ltd | 0 | 0.89 | 0.89 |
105740.KQ | DK-Lok Corp | 0.44 | 0.72 | 0.53 |
217820.KQ | NS Co Ltd | 1.09 | 1.83 | 0.95 |
Low | High | |
Unlevered beta | 0.51 | 0.77 |
Relevered beta | 0.61 | 0.93 |
Adjusted relevered beta | 0.74 | 0.95 |
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 039610.KQ:
cost_of_equity (8.95%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.74) + 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.