041190.KQ
Woori Technology Investment Co Ltd
Price:  
9,610 
KRW
Volume:  
5,213,214
Korea, Republic of | Capital Markets

041190.KQ WACC - Weighted Average Cost of Capital

The WACC of Woori Technology Investment Co Ltd (041190.KQ) is 9.7%.

The Cost of Equity of Woori Technology Investment Co Ltd (041190.KQ) is 9.7%.
The Cost of Debt of Woori Technology Investment Co Ltd (041190.KQ) is 9.55%.

RangeSelected
Cost of equity8.2% - 11.2%9.7%
Tax rate21.3% - 21.7%21.5%
Cost of debt4.0% - 15.1%9.55%
WACC8.2% - 11.2%9.7%
WACC

041190.KQ WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.881.04
Additional risk adjustments0.0%0.5%
Cost of equity8.2%11.2%
Tax rate21.3%21.7%
Debt/Equity ratio
00
Cost of debt4.0%15.1%
After-tax WACC8.2%11.2%
Selected WACC9.7%

041190.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 041190.KQ:

cost_of_equity (9.70%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.88) + 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.