088130.KQ
Dong A Eltek Co Ltd
Price:  
3,310 
KRW
Volume:  
82,117
Korea, Republic of | Electronic Equipment, Instruments & Components

088130.KQ WACC - Weighted Average Cost of Capital

The WACC of Dong A Eltek Co Ltd (088130.KQ) is 9.2%.

The Cost of Equity of Dong A Eltek Co Ltd (088130.KQ) is 15.4%.
The Cost of Debt of Dong A Eltek Co Ltd (088130.KQ) is 7.05%.

RangeSelected
Cost of equity11.5% - 19.3%15.4%
Tax rate22.1% - 22.3%22.2%
Cost of debt4.3% - 9.8%7.05%
WACC6.4% - 12.0%9.2%
WACC

088130.KQ WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta1.452.24
Additional risk adjustments0.0%0.5%
Cost of equity11.5%19.3%
Tax rate22.1%22.3%
Debt/Equity ratio
1.691.69
Cost of debt4.3%9.8%
After-tax WACC6.4%12.0%
Selected WACC9.2%

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.