065570.KQ WACC - Weighted Average Cost of Capital

The WACC of Samyung ENC Co Ltd (065570.KQ) is 24.4%.

The Cost of Equity of Samyung ENC Co Ltd (065570.KQ) is 5.80%.

The Cost of Debt of Samyung ENC Co Ltd (065570.KQ) is 72.65%.

	Range	Selected
Cost of equity	5.00% - 6.60%	5.80%
Tax rate	16.80% - 26.90%	21.85%
Cost of debt	7.00% - 138.30%	72.65%
WACC	5.3% - 43.4%	24.4%

WACC

065570.KQ WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.34	0.37

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.00%	6.60%

Tax rate	16.80%	26.90%
Debt/Equity ratio	0.64	0.64
Cost of debt	7.00%	138.30%

After-tax WACC	5.3%	43.4%


Selected WACC	24.4%

065570.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 065570.KQ:

cost_of_equity (5.80%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.34) + 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.