The WACC of Woori Technology Investment Co Ltd (041190.KQ) is 9.7%.
Range | Selected | |
Cost of equity | 8.2% - 11.2% | 9.7% |
Tax rate | 21.3% - 21.7% | 21.5% |
Cost of debt | 4.0% - 15.1% | 9.55% |
WACC | 8.2% - 11.2% | 9.7% |
Category | Low | High |
Long-term bond rate | 3.1% | 3.6% |
Equity market risk premium | 5.8% | 6.8% |
Adjusted beta | 0.88 | 1.04 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.2% | 11.2% |
Tax rate | 21.3% | 21.7% |
Debt/Equity ratio | 0 | 0 |
Cost of debt | 4.0% | 15.1% |
After-tax WACC | 8.2% | 11.2% |
Selected WACC | 9.7% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
041190.KQ | Woori Technology Investment Co Ltd | 0 | 0.59 | 0.58 |
019550.KQ | SBI Investment Korea Co Ltd | 0 | 0.73 | 0.73 |
021080.KQ | Atinum Investment Co Ltd | 0.01 | 0.71 | 0.7 |
027830.KQ | Daesung Private Equity Inc | 0 | 0.65 | 0.65 |
241520.KQ | DSC Investment Inc | 0.17 | 1.13 | 1 |
246690.KQ | TS Investment Corp | 0.02 | 1.34 | 1.31 |
289080.KQ | SV Investment Corp | 0.18 | 1 | 0.87 |
307930.KQ | Company K Partners Ltd | 0 | 1.15 | 1.14 |
600695.SS | Shanghai Greencourt Investment Group Co Ltd | 0.16 | 1.63 | 1.45 |
PILANIINVS.NS | Pilani Investment And Industries Corporation Ltd | 0.32 | 1.69 | 1.35 |
Low | High | |
Unlevered beta | 0.82 | 1.05 |
Relevered beta | 0.82 | 1.06 |
Adjusted relevered beta | 0.88 | 1.04 |
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.