051360.KQ WACC - Weighted Average Cost of Capital

The WACC of Tovis Co Ltd (051360.KQ) is 8.4%.

The Cost of Equity of Tovis Co Ltd (051360.KQ) is 11.50%.

The Cost of Debt of Tovis Co Ltd (051360.KQ) is 4.25%.

	Range	Selected
Cost of equity	8.70% - 14.30%	11.50%
Tax rate	18.30% - 41.50%	29.90%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.7% - 10.1%	8.4%

WACC

051360.KQ WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.97	1.5

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.70%	14.30%

Tax rate	18.30%	41.50%
Debt/Equity ratio	0.57	0.57
Cost of debt	4.00%	4.50%

After-tax WACC	6.7%	10.1%


Selected WACC	8.4%

051360.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 051360.KQ:

cost_of_equity (11.50%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.97) + 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.