054410.KQ
Korea Plasma Technology U Co Ltd
Price:  
3,695.00 
KRW
Volume:  
6,372.00
Korea, Republic of | Machinery
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054410.KQ WACC - Weighted Average Cost of Capital

The WACC of Korea Plasma Technology U Co Ltd (054410.KQ) is 9.8%.

The Cost of Equity of Korea Plasma Technology U Co Ltd (054410.KQ) is 9.90%.
The Cost of Debt of Korea Plasma Technology U Co Ltd (054410.KQ) is 12.05%.

Range Selected
Cost of equity 7.90% - 11.90% 9.90%
Tax rate 15.60% - 20.20% 17.90%
Cost of debt 4.00% - 20.10% 12.05%
WACC 5.3% - 14.2% 9.8%
WACC

054410.KQ WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.84 1.14
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.90% 11.90%
Tax rate 15.60% 20.20%
Debt/Equity ratio 1.32 1.32
Cost of debt 4.00% 20.10%
After-tax WACC 5.3% 14.2%
Selected WACC 9.8%

054410.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 054410.KQ:

cost_of_equity (9.90%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.84) + 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.