084180.KQ WACC - Weighted Average Cost of Capital

The WACC of Soosung Co Ltd (084180.KQ) is 7.7%.

The Cost of Equity of Soosung Co Ltd (084180.KQ) is 8.25%.

The Cost of Debt of Soosung Co Ltd (084180.KQ) is 6.90%.

	Range	Selected
Cost of equity	7.10% - 9.40%	8.25%
Tax rate	3.30% - 5.90%	4.60%
Cost of debt	6.70% - 7.10%	6.90%
WACC	6.9% - 8.5%	7.7%

WACC

084180.KQ WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.69	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.10%	9.40%

Tax rate	3.30%	5.90%
Debt/Equity ratio	0.54	0.54
Cost of debt	6.70%	7.10%

After-tax WACC	6.9%	8.5%


Selected WACC	7.7%

084180.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 084180.KQ:

cost_of_equity (8.25%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.69) + 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.