046440.KQ WACC - Weighted Average Cost of Capital
The WACC of KG Mobilians Co Ltd (046440.KQ) is 9.3%.
| Range | Selected | |
| Cost of equity | 7.9% - 10.5% | 9.2% |
| Tax rate | 27.3% - 28.4% | 27.85% |
| Cost of debt | 4.0% - 23.1% | 13.55% |
| WACC | 6.9% - 11.7% | 9.3% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.82 | 0.95 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.9% | 10.5% |
| Tax rate | 27.3% | 28.4% |
| Debt/Equity ratio | 0.24 | 0.24 |
| Cost of debt | 4.0% | 23.1% |
| After-tax WACC | 6.9% | 11.7% |
| Selected WACC | 9.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 046440.KQ | KG Mobilians Co Ltd | 0.24 | 0.79 | 0.67 |
| 010420.KS | Hansol PNS Co Ltd | 0.11 | -0.47 | -0.43 |
| 025770.KQ | Korea Information & Communications Co Ltd | 0.04 | 0.72 | 0.7 |
| 035600.KQ | KGInicis Co Ltd | 1.64 | 1.11 | 0.51 |
| 036800.KQ | Nice Information & Telecommunication Inc | 0.07 | 0.59 | 0.56 |
| 060250.KQ | NHN KCP Corp | 0 | 2.03 | 2.02 |
| 064260.KQ | Danal Co Ltd | 0.5 | 1.38 | 1.01 |
| 094480.KQ | GalaxiaMoneytree Co Ltd | 0.3 | 0.42 | 0.35 |
| 234340.KQ | SettleBank Corp | 0.06 | 1.44 | 1.38 |
| FSMART.BK | Forth Smart Service PCL | 0.19 | 1.04 | 0.91 |
| Low | High | |
| Unlevered beta | 0.63 | 0.78 |
| Relevered beta | 0.73 | 0.93 |
| Adjusted relevered beta | 0.82 | 0.95 |
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.