The WACC of Interflex Co Ltd (051370.KQ) is 10.4%.
Range | Selected | |
Cost of equity | 8.9% - 12.0% | 10.45% |
Tax rate | 19.4% - 26.8% | 23.1% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 8.9% - 11.9% | 10.4% |
Category | Low | High |
Long-term bond rate | 3.1% | 3.6% |
Equity market risk premium | 5.8% | 6.8% |
Adjusted beta | 1.01 | 1.16 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.9% | 12.0% |
Tax rate | 19.4% | 26.8% |
Debt/Equity ratio | 0 | 0 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 8.9% | 11.9% |
Selected WACC | 10.4% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
051370.KQ | Interflex Co Ltd | 0 | 1.41 | 1.41 |
001820.KS | Samwha Capacitor Co Ltd | 0.02 | 1.73 | 1.71 |
007660.KS | Isu Petasys Co Ltd | 0.09 | 2 | 1.88 |
025320.KQ | Synopex Inc | 0.06 | 1.41 | 1.35 |
033240.KS | Jahwa Electronics Co Ltd | 0.84 | 1.66 | 1.03 |
045970.KQ | CoAsia Corp | 1.65 | 1.44 | 0.65 |
049520.KQ | UIL Co Ltd | 0.08 | 1.04 | 0.98 |
065680.KQ | Uju Electronics Co Ltd | 0.2 | 1.33 | 1.16 |
122990.KQ | WiSoL Co Ltd | 0.07 | 0.71 | 0.68 |
190510.KQ | Namuga Co Ltd | 0.16 | 0.78 | 0.69 |
Low | High | |
Unlevered beta | 1.01 | 1.23 |
Relevered beta | 1.01 | 1.24 |
Adjusted relevered beta | 1.01 | 1.16 |
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 051370.KQ:
cost_of_equity (10.45%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (1.01) + 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.