091580.KQ WACC - Weighted Average Cost of Capital
The WACC of Sangsin Energy Display Precision Co Ltd (091580.KQ) is 8.9%.
| Range | Selected | |
| Cost of equity | 11.2% - 17.1% | 14.15% |
| Tax rate | 19.9% - 21.9% | 20.9% |
| Cost of debt | 4.2% - 7.0% | 5.6% |
| WACC | 6.9% - 10.8% | 8.9% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 1.39 | 1.92 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.2% | 17.1% |
| Tax rate | 19.9% | 21.9% |
| Debt/Equity ratio | 1.18 | 1.18 |
| Cost of debt | 4.2% | 7.0% |
| After-tax WACC | 6.9% | 10.8% |
| Selected WACC | 8.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 091580.KQ | Sangsin Energy Display Precision Co Ltd | 1.18 | 1.65 | 0.85 |
| 011690.KS | Yuyang D&U Co Ltd | 0.01 | 1.32 | 1.32 |
| 017040.KS | Kwang Myung Electric Co Ltd | 0.25 | 0.92 | 0.77 |
| 024810.KQ | Ehwa Technologies Information Co Ltd | 0.12 | 1.98 | 1.81 |
| 033100.KQ | Cheryong Electric Co Ltd | 0 | 1.9 | 1.9 |
| 043200.KQ | Paru Co Ltd | 0.35 | 1.48 | 1.16 |
| 108380.KQ | Daeyang Electric Co Ltd | 0 | 0.61 | 0.61 |
| 119850.KQ | GnCenergy Co Ltd | 0.04 | 0.43 | 0.41 |
| 131390.KQ | PNE Solution Co Ltd | 0.15 | 1.66 | 1.47 |
| 259630.KQ | mPlus Corp | 0.72 | 0.85 | 0.54 |
| Low | High | |
| Unlevered beta | 0.82 | 1.22 |
| Relevered beta | 1.58 | 2.37 |
| Adjusted relevered beta | 1.39 | 1.92 |
091580.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 091580.KQ:
cost_of_equity (14.15%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (1.39) + 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.