040910.KQ WACC - Weighted Average Cost of Capital

The WACC of ICD Co Ltd (040910.KQ) is 9.2%.

The Cost of Equity of ICD Co Ltd (040910.KQ) is 11.50%.

The Cost of Debt of ICD Co Ltd (040910.KQ) is 5.50%.

	Range	Selected
Cost of equity	8.80% - 14.20%	11.50%
Tax rate	16.70% - 25.80%	21.25%
Cost of debt	4.00% - 7.00%	5.50%
WACC	7.0% - 11.3%	9.2%

WACC

040910.KQ WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.98	1.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.80%	14.20%

Tax rate	16.70%	25.80%
Debt/Equity ratio	0.47	0.47
Cost of debt	4.00%	7.00%

After-tax WACC	7.0%	11.3%


Selected WACC	9.2%

040910.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 040910.KQ:

cost_of_equity (11.50%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.98) + 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.