096610.KQ WACC - Weighted Average Cost of Capital
The WACC of RFsemi Technologies Inc (096610.KQ) is 7.9%.
| Range | Selected | |
| Cost of equity | 6.9% - 9.4% | 8.15% |
| Tax rate | 11.9% - 17.9% | 14.9% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 6.6% - 9.1% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.65 | 0.78 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.9% | 9.4% |
| Tax rate | 11.9% | 17.9% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 6.6% | 9.1% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 096610.KQ | RFsemi Technologies Inc | 0.09 | 3.44 | 3.2 |
| 033050.KQ | Jeongmoon Information Co Ltd | 0.28 | 0.36 | 0.29 |
| 052860.KQ | I&C Technology Co Ltd | 0.47 | 1.27 | 0.91 |
| 066670.KQ | Display Tech Co Ltd | 0 | 0.55 | 0.55 |
| 072950.KQ | Vissem Electronics Co Ltd | 0.14 | 0.8 | 0.72 |
| 080520.KQ | ODTech | 0.15 | 0.64 | 0.57 |
| 087600.KQ | Pixelplus Co Ltd | 0.31 | 1.04 | 0.83 |
| 101400.KQ | N Citron Inc | 0.13 | -0.17 | -0.15 |
| 131760.KQ | Finetek Co Ltd | 0.84 | 0.32 | 0.19 |
| 171010.KQ | Ram Technology Co Ltd | 0.82 | 1.58 | 0.94 |
| 214310.KQ | Semicon Light Co Ltd | 0.91 | -0.89 | -0.51 |
| Low | High | |
| Unlevered beta | 0.55 | 0.72 |
| Relevered beta | 0.48 | 0.67 |
| Adjusted relevered beta | 0.65 | 0.78 |
096610.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 096610.KQ:
cost_of_equity (8.15%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.65) + 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.