084730.KQ
ThinkwareSystems Corp
Price:  
8,920 
KRW
Volume:  
21,139
Korea, Republic of | Household Durables

084730.KQ WACC - Weighted Average Cost of Capital

The WACC of ThinkwareSystems Corp (084730.KQ) is 6.0%.

The Cost of Equity of ThinkwareSystems Corp (084730.KQ) is 7.45%.
The Cost of Debt of ThinkwareSystems Corp (084730.KQ) is 6.4%.

RangeSelected
Cost of equity6.0% - 8.9%7.45%
Tax rate23.7% - 26.8%25.25%
Cost of debt4.3% - 8.5%6.4%
WACC4.6% - 7.5%6.0%
WACC

084730.KQ WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.50.71
Additional risk adjustments0.0%0.5%
Cost of equity6.0%8.9%
Tax rate23.7%26.8%
Debt/Equity ratio
1.111.11
Cost of debt4.3%8.5%
After-tax WACC4.6%7.5%
Selected WACC6.0%

084730.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 084730.KQ:

cost_of_equity (7.45%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.5) + 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.