073570.KQ WACC - Weighted Average Cost of Capital
The WACC of WI Co Ltd (073570.KQ) is 8.4%.
| Range | Selected | |
| Cost of equity | 6.1% - 10.9% | 8.5% |
| Tax rate | 3.9% - 9.7% | 6.8% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 6.0% - 10.8% | 8.4% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.52 | 0.99 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 10.9% |
| Tax rate | 3.9% | 9.7% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 6.0% | 10.8% |
| Selected WACC | 8.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 073570.KQ | WI Co Ltd | 0.02 | 0.98 | 0.96 |
| 036090.KQ | Wizit Co Ltd | 1.74 | 0.46 | 0.18 |
| 054620.KQ | APS Holdings Corp | 1.3 | 0.49 | 0.22 |
| 062860.KQ | TLI Inc | 0 | 0 | 0 |
| 079810.KQ | DE&T Co Ltd | 0.19 | 1.96 | 1.66 |
| 088390.KQ | Innox Corp | 0.74 | 1.66 | 0.98 |
| 092870.KQ | Exicon Co Ltd | 0.06 | 1.97 | 1.87 |
| 123010.KQ | iA Networks Co Ltd | 0.63 | 0.48 | 0.3 |
| 224060.KQ | CODI-M Co Ltd | 3.41 | 0.65 | 0.15 |
| 253590.KQ | Neosem Inc | 0.01 | 2.03 | 2.01 |
| Low | High | |
| Unlevered beta | 0.27 | 0.97 |
| Relevered beta | 0.28 | 0.99 |
| Adjusted relevered beta | 0.52 | 0.99 |
073570.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 073570.KQ:
cost_of_equity (8.50%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.52) + 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.