090470.KQ
Jastech Ltd
Price:  
3,685 
KRW
Volume:  
13,477
Korea, Republic of | Semiconductors & Semiconductor Equipment

090470.KQ WACC - Weighted Average Cost of Capital

The WACC of Jastech Ltd (090470.KQ) is 7.1%.

The Cost of Equity of Jastech Ltd (090470.KQ) is 7.55%.
The Cost of Debt of Jastech Ltd (090470.KQ) is 4.25%.

RangeSelected
Cost of equity6.5% - 8.6%7.55%
Tax rate21.1% - 22.9%22%
Cost of debt4.0% - 4.5%4.25%
WACC6.1% - 8.1%7.1%
WACC

090470.KQ WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.590.67
Additional risk adjustments0.0%0.5%
Cost of equity6.5%8.6%
Tax rate21.1%22.9%
Debt/Equity ratio
0.130.13
Cost of debt4.0%4.5%
After-tax WACC6.1%8.1%
Selected WACC7.1%

090470.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 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.