094480.KQ WACC - Weighted Average Cost of Capital
The WACC of GalaxiaMoneytree Co Ltd (094480.KQ) is 7.0%.
| Range | Selected | |
| Cost of equity | 6.1% - 9.3% | 7.7% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 4.9% - 8.3% | 6.6% |
| WACC | 5.5% - 8.5% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.51 | 0.77 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 9.3% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 0.38 | 0.38 |
| Cost of debt | 4.9% | 8.3% |
| After-tax WACC | 5.5% | 8.5% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 094480.KQ | GalaxiaMoneytree Co Ltd | 0.38 | -0.18 | -0.14 |
| 020120.KS | KidariStudio Inc | 0.35 | 0.26 | 0.2 |
| 052600.KQ | Hannet Co Ltd | 0.2 | 0.69 | 0.59 |
| 064480.KQ | Bridgetec Corp | 0.04 | 0.78 | 0.76 |
| 079940.KQ | Gabia Inc | 0.64 | 0.33 | 0.22 |
| 092130.KQ | E Credible Co Ltd | 0 | 0.17 | 0.17 |
| 234340.KQ | SettleBank Corp | 0.11 | 0.49 | 0.45 |
| 242040.KQ | Namu Tech Co Ltd | 0.48 | 0.82 | 0.6 |
| 4015.T | Arara Inc | 0.16 | 1.04 | 0.92 |
| 536.HK | Tradelink Electronic Commerce Ltd | 0 | 0.16 | 0.16 |
| Low | High | |
| Unlevered beta | 0.21 | 0.51 |
| Relevered beta | 0.27 | 0.66 |
| Adjusted relevered beta | 0.51 | 0.77 |
094480.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 094480.KQ:
cost_of_equity (7.70%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.51) + 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.