The WACC of Kortek Corp (052330.KQ) is 9.0%.
Range | Selected | |
Cost of equity | 8.8% - 12.9% | 10.85% |
Tax rate | 13.3% - 18.2% | 15.75% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 7.4% - 10.5% | 9.0% |
Category | Low | High |
Long-term bond rate | 3.1% | 3.6% |
Equity market risk premium | 5.8% | 6.8% |
Adjusted beta | 0.98 | 1.29 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.8% | 12.9% |
Tax rate | 13.3% | 18.2% |
Debt/Equity ratio | 0.35 | 0.35 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 7.4% | 10.5% |
Selected WACC | 9.0% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
052330.KQ | Kortek Corp | 0.35 | 0.21 | 0.16 |
005070.KS | Cosmo Advanced Materials & Technology Co Ltd | 0.14 | 1.58 | 1.42 |
005930.KS | Samsung Electronics Co Ltd | 0.05 | 1.25 | 1.21 |
038460.KQ | BioSmart Co Ltd | 0.77 | 0.75 | 0.46 |
044380.KS | Jooyon Tech Co Ltd | 0.07 | 0.95 | 0.9 |
045660.KQ | Atec Co Ltd | 0.12 | -0.34 | -0.31 |
096040.KQ | E-Tron Co Ltd | 0.01 | 1.52 | 1.51 |
096630.KQ | S Connect Co Ltd | 1.25 | 1.12 | 0.55 |
2425.TW | Chaintech Technology Corp | 0 | 1.07 | 1.07 |
2465.TW | Leadtek Research Inc | 0.11 | 1.51 | 1.38 |
Low | High | |
Unlevered beta | 0.76 | 1.12 |
Relevered beta | 0.97 | 1.43 |
Adjusted relevered beta | 0.98 | 1.29 |
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 052330.KQ:
cost_of_equity (10.85%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.98) + 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.