053050.KQ
GSE Co Ltd
Price:  
2,970 
KRW
Volume:  
204,444
Korea, Republic of | Gas Utilities

053050.KQ WACC - Weighted Average Cost of Capital

The WACC of GSE Co Ltd (053050.KQ) is 5.9%.

The Cost of Equity of GSE Co Ltd (053050.KQ) is 6.25%.
The Cost of Debt of GSE Co Ltd (053050.KQ) is 5.5%.

RangeSelected
Cost of equity5.3% - 7.2%6.25%
Tax rate13.2% - 15.3%14.25%
Cost of debt4.0% - 7.0%5.5%
WACC4.9% - 6.9%5.9%
WACC

053050.KQ WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.390.46
Additional risk adjustments0.0%0.5%
Cost of equity5.3%7.2%
Tax rate13.2%15.3%
Debt/Equity ratio
0.280.28
Cost of debt4.0%7.0%
After-tax WACC4.9%6.9%
Selected WACC5.9%

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.