088980.KS WACC - Weighted Average Cost of Capital
The WACC of Macquarie Korea Infrastructure Fund (088980.KS) is 5.8%.
| Range | Selected | |
| Cost of equity | 5.2% - 6.7% | 5.95% |
| Tax rate | 25.0% - 25.0% | 25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.1% - 6.5% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.37 | 0.39 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 6.7% |
| Tax rate | 25.0% | 25.0% |
| Debt/Equity ratio | 0.07 | 0.07 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.1% | 6.5% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 088980.KS | Macquarie Korea Infrastructure Fund | 0.07 | 0.23 | 0.22 |
| 001510.KS | SK Securities Co Ltd | 12.23 | 0.51 | 0.05 |
| 001750.KS | Hanyang Securities Co Ltd | 4.09 | 0.33 | 0.08 |
| 003540.KS | Daishin Securities Co Ltd | 11.86 | 0.5 | 0.05 |
| 010050.KS | Woori Investment Bank Co Ltd | 1.41 | 0.82 | 0.4 |
| 016610.KS | DB Financial Investment Co Ltd | 15.51 | 0.09 | 0.01 |
| 030210.KS | KTB Investment & Securities Co Ltd | 19.54 | -0.05 | 0 |
| 030610.KS | Kyobo Securities Co Ltd | 6.04 | 0.6 | 0.11 |
| 078020.KQ | eBEST Investment & Securities Co Ltd | 20.57 | 0.52 | 0.03 |
| 190650.KQ | Korea Asset Investment Securities Co Ltd | 2.22 | 0.24 | 0.09 |
| Low | High | |
| Unlevered beta | 0.05 | 0.09 |
| Relevered beta | 0.06 | 0.09 |
| Adjusted relevered beta | 0.37 | 0.39 |
088980.KS'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 088980.KS:
cost_of_equity (5.95%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.37) + 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.