088130.KQ WACC - Weighted Average Cost of Capital
The WACC of Dong A Eltek Co Ltd (088130.KQ) is 9.2%.
| Range | Selected | |
| Cost of equity | 11.5% - 19.3% | 15.4% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 4.3% - 9.8% | 7.05% |
| WACC | 6.4% - 12.0% | 9.2% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 1.45 | 2.24 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.5% | 19.3% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 1.69 | 1.69 |
| Cost of debt | 4.3% | 9.8% |
| After-tax WACC | 6.4% | 12.0% |
| Selected WACC | 9.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 088130.KQ | Dong A Eltek Co Ltd | 1.69 | 0.87 | 0.38 |
| 032820.KQ | Woori Technology Inc | 0.17 | 1.78 | 1.58 |
| 057540.KQ | Omnisystem Co Ltd | 0.11 | 0.18 | 0.16 |
| 090360.KQ | Robostar Co Ltd | 0 | 1.3 | 1.3 |
| 094840.KQ | Suprema HQ Inc | 0 | 0.95 | 0.95 |
| 105840.KS | Woojin Inc | 0.01 | 1.35 | 1.34 |
| 126700.KQ | HyVision System Inc | 0.02 | 1.2 | 1.19 |
| 143160.KQ | Intelligent Digital Integrated Security Co Ltd | 0.3 | 0.28 | 0.23 |
| 181340.KQ | IsMedia Co Ltd | 0.08 | 1.42 | 1.33 |
| 224110.KQ | Atec T& Co Ltd | 0.23 | 0 | 0 |
| Low | High | |
| Unlevered beta | 0.72 | 1.23 |
| Relevered beta | 1.67 | 2.85 |
| Adjusted relevered beta | 1.45 | 2.24 |
088130.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 088130.KQ:
cost_of_equity (15.40%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (1.45) + 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.