080470.KQ
Sungchang Autotech Co Ltd
Price:  
4,305.00 
KRW
Volume:  
9,461.00
Korea, Republic of | Auto Components
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080470.KQ WACC - Weighted Average Cost of Capital

The WACC of Sungchang Autotech Co Ltd (080470.KQ) is 5.2%.

The Cost of Equity of Sungchang Autotech Co Ltd (080470.KQ) is 8.25%.
The Cost of Debt of Sungchang Autotech Co Ltd (080470.KQ) is 4.50%.

Range Selected
Cost of equity 6.90% - 9.60% 8.25%
Tax rate 17.50% - 31.10% 24.30%
Cost of debt 4.30% - 4.70% 4.50%
WACC 4.8% - 5.6% 5.2%
WACC

080470.KQ WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.67 0.81
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.90% 9.60%
Tax rate 17.50% 31.10%
Debt/Equity ratio 1.67 1.67
Cost of debt 4.30% 4.70%
After-tax WACC 4.8% 5.6%
Selected WACC 5.2%

080470.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 080470.KQ:

cost_of_equity (8.25%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.67) + 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.