095610.KQ WACC - Weighted Average Cost of Capital

The WACC of Tes Co Ltd (095610.KQ) is 12.1%.

The Cost of Equity of Tes Co Ltd (095610.KQ) is 12.30%.

The Cost of Debt of Tes Co Ltd (095610.KQ) is 6.45%.

	Range	Selected
Cost of equity	10.80% - 13.80%	12.30%
Tax rate	14.20% - 17.50%	15.85%
Cost of debt	4.00% - 8.90%	6.45%
WACC	10.5% - 13.6%	12.1%

WACC

095610.KQ WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	1.33	1.43

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.80%	13.80%

Tax rate	14.20%	17.50%
Debt/Equity ratio	0.04	0.04
Cost of debt	4.00%	8.90%

After-tax WACC	10.5%	13.6%


Selected WACC	12.1%

095610.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 095610.KQ:

cost_of_equity (12.30%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (1.33) + 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.