053690.KS WACC - Weighted Average Cost of Capital
The WACC of HanmiGlobal Co Ltd (053690.KS) is 7.2%.
| Range | Selected | |
| Cost of equity | 7.6% - 11.9% | 9.75% |
| Tax rate | 22.9% - 24.3% | 23.6% |
| Cost of debt | 4.5% - 5.1% | 4.8% |
| WACC | 5.9% - 8.5% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.78 | 1.15 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.6% | 11.9% |
| Tax rate | 22.9% | 24.3% |
| Debt/Equity ratio | 0.73 | 0.73 |
| Cost of debt | 4.5% | 5.1% |
| After-tax WACC | 5.9% | 8.5% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 053690.KS | HanmiGlobal Co Ltd | 0.73 | 1.09 | 0.7 |
| 001260.KS | Namkwang Engineering & Construction Co Ltd | 0.55 | -0.36 | -0.26 |
| 013700.KS | Camus Engineering & Construction Inc | 1.47 | 0.51 | 0.24 |
| 017000.KQ | Shinwon Construction Co Ltd | 1.19 | -0.58 | -0.3 |
| 036190.KQ | Geumhwa PSC Co Ltd | 0.28 | 0.67 | 0.55 |
| 046940.KQ | Woowon Development Co Ltd | 0.49 | 0.32 | 0.23 |
| 052690.KS | KEPCO Engineering & Construction Co Inc | 0 | 0.91 | 0.91 |
| 060370.KQ | KT Submarine Co Ltd | 0 | 1.16 | 1.16 |
| 076080.KQ | Welcron Hantec Co Ltd | 0.02 | 1.08 | 1.06 |
| 226360.KQ | EXT Co Ltd | 0 | 1.11 | 1.1 |
| Low | High | |
| Unlevered beta | 0.43 | 0.78 |
| Relevered beta | 0.67 | 1.22 |
| Adjusted relevered beta | 0.78 | 1.15 |
053690.KS'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 053690.KS:
cost_of_equity (9.75%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.78) + 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.