051370.KQ
Interflex Co Ltd
Price:  
8,240 
KRW
Volume:  
24,063
Korea, Republic of | Electronic Equipment, Instruments & Components

051370.KQ WACC - Weighted Average Cost of Capital

The WACC of Interflex Co Ltd (051370.KQ) is 10.4%.

The Cost of Equity of Interflex Co Ltd (051370.KQ) is 10.45%.
The Cost of Debt of Interflex Co Ltd (051370.KQ) is 4.25%.

RangeSelected
Cost of equity8.9% - 12.0%10.45%
Tax rate19.4% - 26.8%23.1%
Cost of debt4.0% - 4.5%4.25%
WACC8.9% - 11.9%10.4%
WACC

051370.KQ WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta1.011.16
Additional risk adjustments0.0%0.5%
Cost of equity8.9%12.0%
Tax rate19.4%26.8%
Debt/Equity ratio
00
Cost of debt4.0%4.5%
After-tax WACC8.9%11.9%
Selected WACC10.4%

051370.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 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.