099440.KQ WACC - Weighted Average Cost of Capital
The WACC of Smec Co Ltd (099440.KQ) is 6.5%.
| Range | Selected | |
| Cost of equity | 6.4% - 11.1% | 8.75% |
| Tax rate | 6.4% - 7.9% | 7.15% |
| Cost of debt | 4.1% - 4.5% | 4.3% |
| WACC | 5.2% - 7.8% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.58 | 1.03 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 11.1% |
| Tax rate | 6.4% | 7.9% |
| Debt/Equity ratio | 0.88 | 0.88 |
| Cost of debt | 4.1% | 4.5% |
| After-tax WACC | 5.2% | 7.8% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 099440.KQ | Smec Co Ltd | 0.88 | 0.92 | 0.51 |
| 000590.KS | CS Holdings Co Ltd | 0.02 | 0.15 | 0.14 |
| 007530.KQ | Youngsin Metal Industrial | 1.33 | 0.23 | 0.1 |
| 010660.KS | Hwacheon Machinery Co Ltd | 0 | 0.02 | 0.02 |
| 015590.KS | Curo Co Ltd | 0.35 | -0.67 | -0.51 |
| 016920.KQ | Cas | 1.48 | 0.57 | 0.24 |
| 036560.KQ | Young Poong Precision Corp | 0.18 | 0.8 | 0.68 |
| 039610.KQ | HS Valve Co Ltd | 0.25 | 1.8 | 1.46 |
| 054950.KQ | JVM Co Ltd | 0.1 | 1.07 | 0.98 |
| 105740.KQ | DK-Lok Corp | 0.45 | 0.97 | 0.68 |
| Low | High | |
| Unlevered beta | 0.2 | 0.58 |
| Relevered beta | 0.37 | 1.04 |
| Adjusted relevered beta | 0.58 | 1.03 |
099440.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 099440.KQ:
cost_of_equity (8.75%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.58) + 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.