040910.KQ WACC - Weighted Average Cost of Capital
The WACC of ICD Co Ltd (040910.KQ) is 9.0%.
| Range | Selected | |
| Cost of equity | 8.6% - 13.8% | 11.2% |
| Tax rate | 16.7% - 25.8% | 21.25% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 6.9% - 11.1% | 9.0% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.94 | 1.42 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.6% | 13.8% |
| Tax rate | 16.7% | 25.8% |
| Debt/Equity ratio | 0.46 | 0.46 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 6.9% | 11.1% |
| Selected WACC | 9.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 040910.KQ | ICD Co Ltd | 0.46 | 1.1 | 0.81 |
| 009310.KS | Charm Engineering Co Ltd | 0.95 | 0.3 | 0.17 |
| 049080.KQ | GigaLane Co Ltd | 0.55 | 0.68 | 0.48 |
| 049950.KQ | MeereCompany Inc | 0 | 1.17 | 1.16 |
| 083310.KQ | LOTVacuum Co Ltd | 0.17 | 1.47 | 1.3 |
| 095340.KQ | ISC Co Ltd | 0.03 | 1.51 | 1.47 |
| 110990.KQ | Digital Imaging Technology Inc | 0 | 1.8 | 1.8 |
| 143540.KQ | Youngwoo DSP Co Ltd | 0.85 | 0.57 | 0.34 |
| 161580.KQ | Philoptics Co Ltd | 0.26 | 1.5 | 1.25 |
| 196490.KQ | DA Technology Co Ltd | 0.13 | -0.06 | -0.05 |
| Low | High | |
| Unlevered beta | 0.68 | 1.2 |
| Relevered beta | 0.91 | 1.63 |
| Adjusted relevered beta | 0.94 | 1.42 |
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 (11.20%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.94) + 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.