089230.KQ WACC - Weighted Average Cost of Capital
The WACC of E&M Co Ltd (089230.KQ) is 6.3%.
| Range | Selected | |
| Cost of equity | 7.5% - 10.8% | 9.15% |
| Tax rate | 9.7% - 13.7% | 11.7% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.0% - 7.7% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.77 | 0.99 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 10.8% |
| Tax rate | 9.7% | 13.7% |
| Debt/Equity ratio | 1.88 | 1.88 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.0% | 7.7% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 089230.KQ | E&M Co Ltd | 1.88 | 0.86 | 0.32 |
| 002420.KS | Century Co Ltd | 0.43 | 0.01 | 0.01 |
| 036420.KS | JContentree Corp | 8.44 | 1.02 | 0.12 |
| 046390.KQ | Samhwa Networks Co Ltd | 0.02 | 0.33 | 0.33 |
| 068050.KQ | Pan Entertainment Co Ltd | 0.27 | 0.54 | 0.43 |
| 079160.KS | CJ CGV Co Ltd | 3.22 | 0.48 | 0.13 |
| 086980.KQ | Showbox Corp | 0.01 | 0.5 | 0.5 |
| 206560.KQ | Dexter Studios Co Ltd | 0.15 | 1.05 | 0.92 |
| 253450.KQ | Studio Dragon Corp | 0 | 0.12 | 0.12 |
| 299900.KQ | Wysiwyg Studios Co Ltd | 0.28 | 1.87 | 1.5 |
| Low | High | |
| Unlevered beta | 0.24 | 0.37 |
| Relevered beta | 0.66 | 0.99 |
| Adjusted relevered beta | 0.77 | 0.99 |
089230.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 089230.KQ:
cost_of_equity (9.15%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.77) + 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.