046440.KQ
KG Mobilians Co Ltd
Price:  
5,610 
KRW
Volume:  
323,334
Korea, Republic of | IT Services

046440.KQ WACC - Weighted Average Cost of Capital

The WACC of KG Mobilians Co Ltd (046440.KQ) is 9.3%.

The Cost of Equity of KG Mobilians Co Ltd (046440.KQ) is 9.2%.
The Cost of Debt of KG Mobilians Co Ltd (046440.KQ) is 13.55%.

RangeSelected
Cost of equity7.9% - 10.5%9.2%
Tax rate27.3% - 28.4%27.85%
Cost of debt4.0% - 23.1%13.55%
WACC6.9% - 11.7%9.3%
WACC

046440.KQ WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.820.95
Additional risk adjustments0.0%0.5%
Cost of equity7.9%10.5%
Tax rate27.3%28.4%
Debt/Equity ratio
0.240.24
Cost of debt4.0%23.1%
After-tax WACC6.9%11.7%
Selected WACC9.3%

046440.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 046440.KQ:

cost_of_equity (9.20%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.82) + 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.