044340.KQ WACC - Weighted Average Cost of Capital
The WACC of Winix Inc (044340.KQ) is 6.0%.
| Range | Selected | |
| Cost of equity | 6.6% - 11.0% | 8.8% |
| Tax rate | 23.7% - 25.1% | 24.4% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.8% - 7.2% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.61 | 1.02 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.6% | 11.0% |
| Tax rate | 23.7% | 25.1% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.8% | 7.2% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 044340.KQ | Winix Inc | 1 | 1.2 | 0.68 |
| 002700.KS | Shinil Electronics Co Ltd | 0.19 | 0.24 | 0.21 |
| 012200.KS | Keyang Electric Machinery Co Ltd | 1.42 | 0.52 | 0.25 |
| 037070.KQ | Paseco Co Ltd | 0.08 | 0.55 | 0.52 |
| 066130.KQ | Haatz Inc | 0.35 | 0.2 | 0.16 |
| 071460.KQ | WiniaDimchae Co Ltd | 9.33 | 0 | 0 |
| 192400.KS | Cuckoo Holdings Co Ltd | 0.01 | 0.07 | 0.07 |
| 234920.KQ | Zaigle Co Ltd | 0.35 | 1.92 | 1.51 |
| 300217.SZ | Zhenjiang Dongfang Electric Heating Technology Co Ltd | 0.09 | 1.88 | 1.76 |
| IFBIND.NS | IFB Industries Ltd | 0.04 | 1.14 | 1.1 |
| Low | High | |
| Unlevered beta | 0.24 | 0.59 |
| Relevered beta | 0.42 | 1.03 |
| Adjusted relevered beta | 0.61 | 1.02 |
044340.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 044340.KQ:
cost_of_equity (8.80%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.61) + 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.