056700.KQ
Shinwha Intertek Corp
Price:  
1,964.00 
KRW
Volume:  
31,612.00
Korea, Republic of | Chemicals
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056700.KQ WACC - Weighted Average Cost of Capital

The WACC of Shinwha Intertek Corp (056700.KQ) is 5.6%.

The Cost of Equity of Shinwha Intertek Corp (056700.KQ) is 6.90%.
The Cost of Debt of Shinwha Intertek Corp (056700.KQ) is 5.80%.

Range Selected
Cost of equity 5.80% - 8.00% 6.90%
Tax rate 20.30% - 26.00% 23.15%
Cost of debt 4.90% - 6.70% 5.80%
WACC 4.8% - 6.4% 5.6%
WACC

056700.KQ WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.47 0.57
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.80% 8.00%
Tax rate 20.30% 26.00%
Debt/Equity ratio 1.09 1.09
Cost of debt 4.90% 6.70%
After-tax WACC 4.8% 6.4%
Selected WACC 5.6%

056700.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 056700.KQ:

cost_of_equity (6.90%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.47) + 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.