069920.KQ WACC - Weighted Average Cost of Capital
The WACC of ISE Commerce Co Ltd (069920.KQ) is 7.2%.
| Range | Selected | |
| Cost of equity | 5.6% - 7.4% | 6.5% |
| Tax rate | 0.3% - 9.6% | 4.95% |
| Cost of debt | 7.0% - 25.7% | 16.35% |
| WACC | 5.8% - 8.7% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.44 | 0.49 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 7.4% |
| Tax rate | 0.3% | 9.6% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 7.0% | 25.7% |
| After-tax WACC | 5.8% | 8.7% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 069920.KQ | ISE Commerce Co Ltd | 0.09 | 1.67 | 1.53 |
| 035760.KQ | CJ ENM Co Ltd | 2.38 | -0.14 | -0.04 |
| 053280.KQ | Yes 24 Co Ltd | 0.72 | 0.21 | 0.12 |
| 057050.KS | Hyundai Home Shopping Network Corp | 0.61 | 0.29 | 0.18 |
| 080010.KQ | eSang Networks Co Ltd | 0.35 | 0.19 | 0.14 |
| 138250.KS | NS Shopping Co Ltd | 1.42 | 1.11 | 0.46 |
| 290510.KQ | KoreaCenter Co Ltd | 0.19 | 1 | 0.84 |
| 3185.T | Dream Vision Co Ltd | 0.62 | 0.04 | 0.03 |
| 3192.T | Shirohato Co Ltd | 1.67 | 0.43 | 0.16 |
| DMC.AX | Design Milk Co Ltd | 0.05 | 0.3 | 0.28 |
| Low | High | |
| Unlevered beta | 0.15 | 0.22 |
| Relevered beta | 0.16 | 0.24 |
| Adjusted relevered beta | 0.44 | 0.49 |
069920.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 069920.KQ:
cost_of_equity (6.50%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.44) + 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.