The WACC of Jastech Ltd (090470.KQ) is 7.1%.
Range | Selected | |
Cost of equity | 6.5% - 8.6% | 7.55% |
Tax rate | 21.1% - 22.9% | 22% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 6.1% - 8.1% | 7.1% |
Category | Low | High |
Long-term bond rate | 3.1% | 3.6% |
Equity market risk premium | 5.8% | 6.8% |
Adjusted beta | 0.59 | 0.67 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.5% | 8.6% |
Tax rate | 21.1% | 22.9% |
Debt/Equity ratio | 0.13 | 0.13 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 6.1% | 8.1% |
Selected WACC | 7.1% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
090470.KQ | Jastech Ltd | 0.13 | 0.71 | 0.65 |
009310.KS | Charm Engineering Co Ltd | 0.97 | 0.28 | 0.16 |
068790.KQ | DMS Co Ltd | 0.57 | 0.71 | 0.49 |
079950.KQ | Invenia Co Ltd | 2.07 | 0.98 | 0.37 |
138690.KQ | LIS Co Ltd | 0.27 | 0 | 0 |
143540.KQ | Youngwoo DSP Co Ltd | 0.86 | 0.54 | 0.33 |
196490.KQ | DA Technology Co Ltd | 0.13 | -0.06 | -0.05 |
227950.KQ | N2Tech Co Ltd | 0.01 | 0.45 | 0.45 |
241770.KQ | Mecaro Co Ltd | 0.01 | 0.48 | 0.48 |
264660.KQ | C&G Hi Tech Co Ltd | 0.19 | 1.41 | 1.22 |
Low | High | |
Unlevered beta | 0.35 | 0.46 |
Relevered beta | 0.39 | 0.51 |
Adjusted relevered beta | 0.59 | 0.67 |
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 090470.KQ:
cost_of_equity (7.55%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.59) + 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.