084730.KQ WACC - Weighted Average Cost of Capital
The WACC of ThinkwareSystems Corp (084730.KQ) is 6.0%.
| Range | Selected | |
| Cost of equity | 6.0% - 8.9% | 7.45% |
| Tax rate | 23.7% - 26.8% | 25.25% |
| Cost of debt | 4.3% - 8.5% | 6.4% |
| WACC | 4.6% - 7.5% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.5 | 0.71 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 8.9% |
| Tax rate | 23.7% | 26.8% |
| Debt/Equity ratio | 1.11 | 1.11 |
| Cost of debt | 4.3% | 8.5% |
| After-tax WACC | 4.6% | 7.5% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 084730.KQ | ThinkwareSystems Corp | 1.11 | 0.88 | 0.48 |
| 017250.KQ | Interm Corp | 1.11 | 0.2 | 0.11 |
| 025440.KQ | Daesung Eltec Co Ltd | 3.18 | 0.12 | 0.03 |
| 032540.KQ | TJ Media Co Ltd | 0.28 | 0.56 | 0.46 |
| 046310.KQ | BG T&A Co | 0.29 | 0.66 | 0.54 |
| 060570.KQ | DreamUs Company | 0.03 | 0.77 | 0.75 |
| 066130.KQ | Haatz Inc | 0.35 | 0.2 | 0.16 |
| 161570.KQ | The Midong Co Ltd | 1.02 | -0.39 | -0.22 |
| 225190.KQ | Samyang Optics Co Ltd | 0.09 | -0.38 | -0.36 |
| 6201.TW | Ya Horng Electronic Co Ltd | 0.01 | 0.2 | 0.2 |
| Low | High | |
| Unlevered beta | 0.14 | 0.31 |
| Relevered beta | 0.25 | 0.57 |
| Adjusted relevered beta | 0.5 | 0.71 |
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.