060310.KQ WACC - Weighted Average Cost of Capital
The WACC of 3S Korea Co Ltd (060310.KQ) is 8.8%.
| Range | Selected | |
| Cost of equity | 7.5% - 10.5% | 9% |
| Tax rate | 0.5% - 2.4% | 1.45% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 7.3% - 10.3% | 8.8% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.76 | 0.94 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 10.5% |
| Tax rate | 0.5% | 2.4% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 7.3% | 10.3% |
| Selected WACC | 8.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 060310.KQ | 3S Korea Co Ltd | 0.04 | 0.52 | 0.5 |
| 004770.KS | Sunny Electronics Co Ltd | 0.01 | 0.55 | 0.54 |
| 019490.KS | Hitron Systems Inc | 0.47 | 1.56 | 1.06 |
| 032820.KQ | Woori Technology Inc | 0.36 | 1.14 | 0.84 |
| 094840.KQ | Suprema HQ Inc | 0 | 0.9 | 0.9 |
| 094940.KQ | Puloon Technology Inc | 0.06 | 0.69 | 0.66 |
| 203450.KQ | Union Community Co Ltd | 0.2 | 0.52 | 0.43 |
| 237750.KQ | PNC Technologies Co Ltd | 0.78 | 0.87 | 0.49 |
| 254120.KQ | Xavis Co Ltd | 0.13 | 1.93 | 1.71 |
| 317770.KQ | Suprema ID Inc | 0.01 | 1.04 | 1.03 |
| Low | High | |
| Unlevered beta | 0.61 | 0.87 |
| Relevered beta | 0.64 | 0.91 |
| Adjusted relevered beta | 0.76 | 0.94 |
060310.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 060310.KQ:
cost_of_equity (9.00%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.76) + 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.