058730.KS WACC - Weighted Average Cost of Capital
The WACC of Development Advance Solution Co Ltd (058730.KS) is 4.7%.
| Range | Selected | |
| Cost of equity | 6.1% - 8.0% | 7.05% |
| Tax rate | 29.2% - 40.9% | 35.05% |
| Cost of debt | 4.2% - 7.0% | 5.6% |
| WACC | 4.0% - 5.4% | 4.7% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.53 | 0.58 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 8.0% |
| Tax rate | 29.2% | 40.9% |
| Debt/Equity ratio | 2.12 | 2.12 |
| Cost of debt | 4.2% | 7.0% |
| After-tax WACC | 4.0% | 5.4% |
| Selected WACC | 4.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 058730.KS | Development Advance Solution Co Ltd | 2.12 | 0.2 | 0.08 |
| 001080.KS | Manho Rope & Wire Ltd | 0.01 | -0.42 | -0.42 |
| 004890.KS | Dongil Industries Co Ltd | 0.14 | 0.23 | 0.21 |
| 008260.KS | NI Steel Co Ltd | 1.73 | 0.44 | 0.21 |
| 012160.KS | YoungWire Co Ltd | 7.06 | 0.86 | 0.16 |
| 012620.KQ | Wonil Special Steel | 2.24 | 0.2 | 0.08 |
| 037760.KQ | Cenit Co Ltd | 1.51 | 0.26 | 0.13 |
| 039240.KQ | Kyeong Nam Steel Co Ltd | 0.17 | 0.12 | 0.11 |
| 060380.KQ | Dongyang S Tec Co Ltd | 1.2 | 1.16 | 0.66 |
| 140520.KQ | Daechang Steel Co Ltd | 0.37 | 0.2 | 0.16 |
| Low | High | |
| Unlevered beta | 0.12 | 0.16 |
| Relevered beta | 0.3 | 0.37 |
| Adjusted relevered beta | 0.53 | 0.58 |
058730.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 058730.KS:
cost_of_equity (7.05%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.53) + 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.