053160.KQ WACC - Weighted Average Cost of Capital
The WACC of FreeMs Corp (053160.KQ) is 7.7%.
| Range | Selected | |
| Cost of equity | 5.5% - 7.1% | 6.3% |
| Tax rate | 3.8% - 13.0% | 8.4% |
| Cost of debt | 7.0% - 131.8% | 69.4% |
| WACC | 5.5% - 9.9% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.42 | 0.44 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 7.1% |
| Tax rate | 3.8% | 13.0% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 7.0% | 131.8% |
| After-tax WACC | 5.5% | 9.9% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 053160.KQ | FreeMs Corp | 0.03 | -0.09 | -0.09 |
| 041440.KQ | Everdigm Corp | 0.3 | 0.16 | 0.12 |
| 044060.KQ | Jokwang I.L.I Co Ltd | 0.32 | -0.78 | -0.6 |
| 067170.KQ | Autech Corp | 4.29 | 0.13 | 0.03 |
| 073010.KQ | KSP Co Ltd | 0.17 | 0.55 | 0.47 |
| 084180.KQ | Soosung Co Ltd | 0.59 | 0.27 | 0.17 |
| 099410.KQ | Dongbang Ship Machinery Co Ltd | 0.26 | 0.16 | 0.13 |
| 101000.KQ | Sangsangin Industry Co Ltd | 0.26 | 0.5 | 0.4 |
| 101930.KQ | Inhwa Precision Co Ltd | 0.39 | 0.21 | 0.15 |
| 317850.KQ | Daemo Engineering Co Ltd | 0.15 | 0.29 | 0.25 |
| Low | High | |
| Unlevered beta | 0.12 | 0.16 |
| Relevered beta | 0.13 | 0.16 |
| Adjusted relevered beta | 0.42 | 0.44 |
053160.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 053160.KQ:
cost_of_equity (6.30%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.42) + 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.