052460.KQ WACC - Weighted Average Cost of Capital
The WACC of Icraft Co Ltd (052460.KQ) is 6.1%.
| Range | Selected | |
| Cost of equity | 5.6% - 7.6% | 6.6% |
| Tax rate | 16.3% - 20.9% | 18.6% |
| Cost of debt | 4.2% - 8.3% | 6.25% |
| WACC | 5.0% - 7.3% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.43 | 0.51 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 7.6% |
| Tax rate | 16.3% | 20.9% |
| Debt/Equity ratio | 0.38 | 0.38 |
| Cost of debt | 4.2% | 8.3% |
| After-tax WACC | 5.0% | 7.3% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 052460.KQ | Icraft Co Ltd | 0.38 | 1.12 | 0.86 |
| 010280.KQ | SsangYong Information & Communications Corp | 0.71 | -0.16 | -0.1 |
| 020180.KQ | Daishin Information | 0.63 | 0.17 | 0.11 |
| 030790.KS | BK Tops Co Ltd | 1.16 | -0.27 | -0.14 |
| 053980.KQ | Osangjaiel Co Ltd | 0 | 0.83 | 0.83 |
| 094860.KQ | KornicGlory Co Ltd | 0.32 | 0.14 | 0.11 |
| 115500.KQ | Korea Computer & Systems Inc | 0 | 1.17 | 1.16 |
| 136540.KQ | Wins Co Ltd | 0 | 0.22 | 0.22 |
| 163730.KQ | Finger Inc | 0.02 | -0.48 | -0.47 |
| 173130.KQ | Opasnet Co Ltd | 0.4 | 0.26 | 0.2 |
| Low | High | |
| Unlevered beta | 0.11 | 0.21 |
| Relevered beta | 0.15 | 0.27 |
| Adjusted relevered beta | 0.43 | 0.51 |
052460.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 052460.KQ:
cost_of_equity (6.60%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.43) + 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.