043260.KQ WACC - Weighted Average Cost of Capital

The WACC of Sungho Electronics Corp (043260.KQ) is 7.1%.

The Cost of Equity of Sungho Electronics Corp (043260.KQ) is 14.50%.

The Cost of Debt of Sungho Electronics Corp (043260.KQ) is 5.35%.

	Range	Selected
Cost of equity	11.20% - 17.80%	14.50%
Tax rate	18.30% - 23.90%	21.10%
Cost of debt	4.00% - 6.70%	5.35%
WACC	5.5% - 8.7%	7.1%

WACC

043260.KQ WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	1.39	2.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.20%	17.80%

Tax rate	18.30%	23.90%
Debt/Equity ratio	2.51	2.51
Cost of debt	4.00%	6.70%

After-tax WACC	5.5%	8.7%


Selected WACC	7.1%

043260.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 043260.KQ:

cost_of_equity (14.50%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (1.39) + 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.