091700.KQ WACC - Weighted Average Cost of Capital
The WACC of Partron Co Ltd (091700.KQ) is 7.9%.
| Range | Selected | |
| Cost of equity | 7.0% - 10.0% | 8.5% |
| Tax rate | 24.2% - 27.0% | 25.6% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.6% - 9.3% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.67 | 0.86 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.0% | 10.0% |
| Tax rate | 24.2% | 27.0% |
| Debt/Equity ratio | 0.11 | 0.11 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.6% | 9.3% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 091700.KQ | Partron Co Ltd | 0.11 | 0.46 | 0.43 |
| 007660.KS | Isu Petasys Co Ltd | 0.08 | 2 | 1.88 |
| 007810.KS | Korea Circuit Co Ltd | 1.06 | 1.8 | 1 |
| 008060.KS | Daeduck Co Ltd | 0.11 | 0.3 | 0.28 |
| 036710.KQ | Simmtech Holdings Co Ltd | 2.84 | 1.44 | 0.46 |
| 037330.KQ | Inzi Display Co Ltd | 3 | 0.77 | 0.24 |
| 049070.KQ | Intops Co Ltd | 0.11 | 1.6 | 1.47 |
| 050110.KQ | CammSys Corp | 1.78 | 1.11 | 0.47 |
| 090460.KQ | BH Co Ltd | 0.28 | 0.82 | 0.68 |
| 097520.KQ | MCNEX Co Ltd | 0.1 | 0.98 | 0.91 |
| Low | High | |
| Unlevered beta | 0.47 | 0.77 |
| Relevered beta | 0.51 | 0.79 |
| Adjusted relevered beta | 0.67 | 0.86 |
091700.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 091700.KQ:
cost_of_equity (8.50%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.67) + 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.