The WACC of Yong Pyong Resort Corp (070960.KS) is 7.3%.
Range | Selected | |
Cost of equity | 8.8% - 13.2% | 11% |
Tax rate | 20.4% - 23.5% | 21.95% |
Cost of debt | 4.2% - 6.7% | 5.45% |
WACC | 5.8% - 8.8% | 7.3% |
Category | Low | High |
Long-term bond rate | 3.1% | 3.6% |
Equity market risk premium | 5.8% | 6.8% |
Adjusted beta | 0.98 | 1.34 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.8% | 13.2% |
Tax rate | 20.4% | 23.5% |
Debt/Equity ratio | 1.23 | 1.23 |
Cost of debt | 4.2% | 6.7% |
After-tax WACC | 5.8% | 8.8% |
Selected WACC | 7.3% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
070960.KS | Yong Pyong Resort Corp | 1.23 | 0.46 | 0.24 |
032350.KS | Lotte Tour Development Co Ltd | 0.92 | 0.92 | 0.54 |
039130.KS | HanaTour Service Inc | 0.14 | 0.8 | 0.72 |
080160.KQ | Modetour Network Inc | 0.11 | 0.92 | 0.84 |
104620.KQ | Yellow Balloon Tour Co Ltd | 0.36 | 1.19 | 0.92 |
3350.T | Red Planet Japan Inc | 0.01 | 0.99 | 0.98 |
530677.BO | Supreme Holdings & Hospitality (India) Ltd | 0.02 | 1.6 | 1.57 |
B58.SI | Banyan Tree Holdings Ltd | 0.74 | 0.69 | 0.44 |
CLAY.JK | Citra Putra Realty Tbk PT | 0.1 | -0.98 | -0.91 |
LIENHOE.KL | Lien Hoe Corporation Bhd | 0.43 | -0.21 | -0.16 |
Low | High | |
Unlevered beta | 0.5 | 0.77 |
Relevered beta | 0.97 | 1.51 |
Adjusted relevered beta | 0.98 | 1.34 |
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.