040300.KQ WACC - Weighted Average Cost of Capital
The WACC of YTN (040300.KQ) is 6.4%.
| Range | Selected | |
| Cost of equity | 5.3% - 7.5% | 6.4% |
| Tax rate | 17.4% - 20.8% | 19.1% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.3% - 7.5% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.38 | 0.5 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 7.5% |
| Tax rate | 17.4% | 20.8% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.3% | 7.5% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 040300.KQ | YTN | 0 | 0.6 | 0.6 |
| 011420.KS | Galaxia SM Inc | 0.01 | -0.06 | -0.06 |
| 034120.KS | Seoul Broadcasting System | 0.84 | 0.21 | 0.12 |
| 039340.KQ | Korea Business News Co Ltd | 0.11 | -0.05 | -0.05 |
| 052220.KQ | iMBC Co Ltd | 0.02 | 0.49 | 0.49 |
| 058400.KQ | Korea New Network Corp | 0 | 0.31 | 0.31 |
| 101060.KS | SBS Media Holdings Co Ltd | 0.6 | 0.92 | 0.62 |
| 9414.T | Nippon BS Broadcasting Corp | 0 | 0.22 | 0.22 |
| MDIA.JK | Intermedia Capital Tbk PT | 1.86 | 0.01 | 0 |
| SEG.AX | Sports Entertainment Group Ltd | 0.54 | -0.27 | -0.19 |
| Low | High | |
| Unlevered beta | 0.08 | 0.26 |
| Relevered beta | 0.07 | 0.25 |
| Adjusted relevered beta | 0.38 | 0.5 |
040300.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 040300.KQ:
cost_of_equity (6.40%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.38) + 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.