070960.KS
Yong Pyong Resort Corp
Price:  
4,750 
KRW
Volume:  
110,431
Korea, Republic of | Hotels, Restaurants & Leisure

070960.KS WACC - Weighted Average Cost of Capital

The WACC of Yong Pyong Resort Corp (070960.KS) is 7.3%.

The Cost of Equity of Yong Pyong Resort Corp (070960.KS) is 11%.
The Cost of Debt of Yong Pyong Resort Corp (070960.KS) is 5.45%.

RangeSelected
Cost of equity8.8% - 13.2%11%
Tax rate20.4% - 23.5%21.95%
Cost of debt4.2% - 6.7%5.45%
WACC5.8% - 8.8%7.3%
WACC

070960.KS WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.981.34
Additional risk adjustments0.0%0.5%
Cost of equity8.8%13.2%
Tax rate20.4%23.5%
Debt/Equity ratio
1.231.23
Cost of debt4.2%6.7%
After-tax WACC5.8%8.8%
Selected WACC7.3%

070960.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 070960.KS:

cost_of_equity (11.00%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.98) + 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.