092460.KQ
Hanla IMS Co Ltd
Price:  
9,440 
KRW
Volume:  
60,006
Korea, Republic of | Electronic Equipment, Instruments & Components

092460.KQ WACC - Weighted Average Cost of Capital

The WACC of Hanla IMS Co Ltd (092460.KQ) is 7.8%.

The Cost of Equity of Hanla IMS Co Ltd (092460.KQ) is 8.05%.
The Cost of Debt of Hanla IMS Co Ltd (092460.KQ) is 4.25%.

RangeSelected
Cost of equity7.0% - 9.1%8.05%
Tax rate10.3% - 12.1%11.2%
Cost of debt4.0% - 4.5%4.25%
WACC6.8% - 8.8%7.8%
WACC

092460.KQ WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.680.74
Additional risk adjustments0.0%0.5%
Cost of equity7.0%9.1%
Tax rate10.3%12.1%
Debt/Equity ratio
0.060.06
Cost of debt4.0%4.5%
After-tax WACC6.8%8.8%
Selected WACC7.8%

092460.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 092460.KQ:

cost_of_equity (8.05%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.68) + 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.