043360.KQ WACC - Weighted Average Cost of Capital
The WACC of Digital Graphics Inc (043360.KQ) is 6.7%.
| Range | Selected | |
| Cost of equity | 5.6% - 7.9% | 6.75% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 6.4% - 7.0% | 6.7% |
| WACC | 5.6% - 7.8% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.44 | 0.55 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 7.9% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 6.4% | 7.0% |
| After-tax WACC | 5.6% | 7.8% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 043360.KQ | Digital Graphics Inc | 0.02 | 0.71 | 0.7 |
| 033560.KQ | Bluecom Co Ltd | 0.45 | 0.2 | 0.15 |
| 045660.KQ | Atec Co Ltd | 0.12 | -0.34 | -0.31 |
| 052330.KQ | Kortek Corp | 0.35 | 0.21 | 0.16 |
| 068940.KQ | ICK Co Ltd | 0.14 | 0.72 | 0.65 |
| 070300.KQ | XCure Corp | 0.08 | 0.04 | 0.04 |
| 096690.KQ | ARoot Co Ltd | 0.51 | 0.71 | 0.51 |
| 101330.KQ | Mobase Co Ltd | 3.29 | 0.75 | 0.21 |
| 131180.KQ | Dilli Illustrate Inc | 0.07 | 0.54 | 0.52 |
| 8066.HK | Phoenitron Holdings Ltd | 0.09 | -0.36 | -0.34 |
| Low | High | |
| Unlevered beta | 0.16 | 0.33 |
| Relevered beta | 0.16 | 0.33 |
| Adjusted relevered beta | 0.44 | 0.55 |
043360.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 043360.KQ:
cost_of_equity (6.75%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.44) + 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.