053620.KQ
Taeyang Corp
Price:  
7,060 
KRW
Volume:  
3,369
Korea, Republic of | Oil, Gas & Consumable Fuels

053620.KQ WACC - Weighted Average Cost of Capital

The WACC of Taeyang Corp (053620.KQ) is 7.5%.

The Cost of Equity of Taeyang Corp (053620.KQ) is 7.55%.
The Cost of Debt of Taeyang Corp (053620.KQ) is 4.25%.

RangeSelected
Cost of equity6.4% - 8.7%7.55%
Tax rate18.9% - 21.7%20.3%
Cost of debt4.0% - 4.5%4.25%
WACC6.4% - 8.6%7.5%
WACC

053620.KQ WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.580.67
Additional risk adjustments0.0%0.5%
Cost of equity6.4%8.7%
Tax rate18.9%21.7%
Debt/Equity ratio
0.020.02
Cost of debt4.0%4.5%
After-tax WACC6.4%8.6%
Selected WACC7.5%

053620.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 053620.KQ:

cost_of_equity (7.55%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.58) + 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.