066310.KQ WACC - Weighted Average Cost of Capital
The WACC of QSI Co Ltd (066310.KQ) is 8.5%.
| Range | Selected | |
| Cost of equity | 7.4% - 9.6% | 8.5% |
| Tax rate | 23.0% - 31.5% | 27.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.3% - 9.6% | 8.5% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.74 | 0.81 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.4% | 9.6% |
| Tax rate | 23.0% | 31.5% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.3% | 9.6% |
| Selected WACC | 8.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 066310.KQ | QSI Co Ltd | 0.01 | 0.83 | 0.82 |
| 036170.KQ | Cloud Air Co Ltd | 0 | -0.02 | -0.02 |
| 038530.KQ | Gold Pacific Co Ltd | 0.02 | 0.65 | 0.64 |
| 059120.KQ | Ajinextek Co Ltd | 0.01 | 1.22 | 1.21 |
| 066670.KQ | Display Tech Co Ltd | 0 | 0.55 | 0.55 |
| 087600.KQ | Pixelplus Co Ltd | 0.31 | 1.04 | 0.85 |
| 119830.KQ | ITEK Inc | 0.27 | 0.62 | 0.52 |
| 171010.KQ | Ram Technology Co Ltd | 0.82 | 1.58 | 0.98 |
| 317120.KQ | Ranix | 0.56 | 0.86 | 0.61 |
| 327260.KQ | Metal Life Co Ltd | 0.44 | 0.8 | 0.6 |
| Low | High | |
| Unlevered beta | 0.6 | 0.71 |
| Relevered beta | 0.61 | 0.72 |
| Adjusted relevered beta | 0.74 | 0.81 |
066310.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 066310.KQ:
cost_of_equity (8.50%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.74) + 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.