069510.KQ WACC - Weighted Average Cost of Capital
The WACC of ESTec Corp (069510.KQ) is 8.5%.
| Range | Selected | |
| Cost of equity | 7.5% - 11.1% | 9.3% |
| Tax rate | 18.5% - 20.4% | 19.45% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.9% - 10.0% | 8.5% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.77 | 1.02 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 11.1% |
| Tax rate | 18.5% | 20.4% |
| Debt/Equity ratio | 0.16 | 0.16 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.9% | 10.0% |
| Selected WACC | 8.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 069510.KQ | ESTec Corp | 0.16 | 0.67 | 0.59 |
| 008700.KS | Anam Electronics Co Ltd | 0.25 | 1.3 | 1.08 |
| 025440.KQ | Daesung Eltec Co Ltd | 4.27 | -0.39 | -0.09 |
| 032540.KQ | TJ Media Co Ltd | 0.35 | 0.4 | 0.31 |
| 046310.KQ | BG T&A Co | 0.33 | 0.68 | 0.54 |
| 060570.KQ | DreamUs Company | 0.03 | 1.2 | 1.17 |
| 084730.KQ | ThinkwareSystems Corp | 1.12 | 0.96 | 0.5 |
| 2374.TW | Ability Enterprise Co Ltd | 0.03 | 0.96 | 0.94 |
| 3059.TW | Altek Corp | 0.25 | 1.09 | 0.91 |
| 5225.TW | Eastech Holding Ltd | 0.02 | 1.08 | 1.06 |
| Low | High | |
| Unlevered beta | 0.57 | 0.92 |
| Relevered beta | 0.66 | 1.03 |
| Adjusted relevered beta | 0.77 | 1.02 |
069510.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 069510.KQ:
cost_of_equity (9.30%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.77) + 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.