069730.KS WACC - Weighted Average Cost of Capital
The WACC of DSR Wire Corp (069730.KS) is 6.8%.
| Range | Selected | |
| Cost of equity | 6.3% - 9.7% | 8% |
| Tax rate | 13.4% - 14.4% | 13.9% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.5% - 8.1% | 6.8% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.55 | 0.83 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 9.7% |
| Tax rate | 13.4% | 14.4% |
| Debt/Equity ratio | 0.39 | 0.39 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.5% | 8.1% |
| Selected WACC | 6.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 069730.KS | DSR Wire Corp | 0.39 | 0.73 | 0.55 |
| 011690.KS | Yuyang D&U Co Ltd | 0.01 | 1.63 | 1.62 |
| 017040.KS | Kwang Myung Electric Co Ltd | 0.3 | 0.79 | 0.63 |
| 033200.KQ | Moatech Co Ltd | 0 | 0.2 | 0.2 |
| 043200.KQ | Paru Co Ltd | 0.43 | 0.3 | 0.22 |
| 091580.KQ | Sangsin Energy Display Precision Co Ltd | 1.32 | 1.73 | 0.81 |
| 108380.KQ | Daeyang Electric Co Ltd | 0 | 0.57 | 0.57 |
| 119850.KQ | GnCenergy Co Ltd | 0.05 | 0.27 | 0.26 |
| 154040.KQ | Solueta Co Ltd | 3.65 | 0.91 | 0.22 |
| 290690.KQ | Solux Co Ltd | 0.47 | -0.07 | -0.05 |
| Low | High | |
| Unlevered beta | 0.24 | 0.56 |
| Relevered beta | 0.33 | 0.75 |
| Adjusted relevered beta | 0.55 | 0.83 |
069730.KS'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 069730.KS:
cost_of_equity (8.00%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.55) + 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.