060370.KQ
KT Submarine Co Ltd
Price:  
21,400 
KRW
Volume:  
227,955
Korea, Republic of | Construction & Engineering

060370.KQ WACC - Weighted Average Cost of Capital

The WACC of KT Submarine Co Ltd (060370.KQ) is 5.8%.

The Cost of Equity of KT Submarine Co Ltd (060370.KQ) is 5.8%.
The Cost of Debt of KT Submarine Co Ltd (060370.KQ) is 4.7%.

RangeSelected
Cost of equity3.9% - 7.7%5.8%
Tax rate21.0% - 22.1%21.55%
Cost of debt4.0% - 5.4%4.7%
WACC3.9% - 7.7%5.8%
WACC

060370.KQ WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.150.53
Additional risk adjustments0.0%0.5%
Cost of equity3.9%7.7%
Tax rate21.0%22.1%
Debt/Equity ratio
00
Cost of debt4.0%5.4%
After-tax WACC3.9%7.7%
Selected WACC5.8%

060370.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 060370.KQ:

cost_of_equity (5.80%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.15) + 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.