053050.KQ WACC - Weighted Average Cost of Capital
The WACC of GSE Co Ltd (053050.KQ) is 5.9%.
| Range | Selected | |
| Cost of equity | 5.3% - 7.2% | 6.25% |
| Tax rate | 13.2% - 15.3% | 14.25% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.9% - 6.9% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.39 | 0.46 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 7.2% |
| Tax rate | 13.2% | 15.3% |
| Debt/Equity ratio | 0.28 | 0.28 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.9% | 6.9% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 053050.KQ | GSE Co Ltd | 0.28 | 0.28 | 0.23 |
| 003480.KS | Hanjin Heavy Ind & Const Holdings Co Ltd | 4.81 | 0.28 | 0.06 |
| 015350.KS | Busan City Gas Co Ltd | 0 | 0.37 | 0.37 |
| 015360.KS | Yesco Holdings Co Ltd | 0.81 | 0.18 | 0.1 |
| 016710.KS | Daesung Holdings Co Ltd | 1.25 | 0.71 | 0.34 |
| 034590.KS | Incheon City Gas Co Ltd | 0.16 | 0.07 | 0.06 |
| 117580.KS | Daesung Energy Co Ltd | 0.46 | 0.37 | 0.27 |
| 9537.T | Hokuriku Gas Co Ltd | 0.01 | 0.07 | 0.07 |
| 9908.TW | Great Taipei Gas Corp | 0 | -0.01 | -0.01 |
| RTGZ.ME | Gazprom Gazoraspredeleniye Rostov-Na-Donu PAO | 0.6 | 0.1 | 0.07 |
| Low | High | |
| Unlevered beta | 0.07 | 0.15 |
| Relevered beta | 0.09 | 0.19 |
| Adjusted relevered beta | 0.39 | 0.46 |
053050.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 053050.KQ:
cost_of_equity (6.25%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.39) + 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.