042700.KS WACC - Weighted Average Cost of Capital

The WACC of Hanmi Semiconductor Co Ltd (042700.KS) is 12.1%.

The Cost of Equity of Hanmi Semiconductor Co Ltd (042700.KS) is 12.15%.

The Cost of Debt of Hanmi Semiconductor Co Ltd (042700.KS) is 6.85%.

	Range	Selected
Cost of equity	10.80% - 13.50%	12.15%
Tax rate	23.20% - 23.50%	23.35%
Cost of debt	4.00% - 9.70%	6.85%
WACC	10.8% - 13.5%	12.1%

WACC

042700.KS WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	1.33	1.38

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.80%	13.50%

Tax rate	23.20%	23.50%
Debt/Equity ratio	0	0
Cost of debt	4.00%	9.70%

After-tax WACC	10.8%	13.5%


Selected WACC	12.1%

042700.KS'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 042700.KS:

cost_of_equity (12.15%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (1.33) + 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.