100840.KS WACC - Weighted Average Cost of Capital
The WACC of SNTEnergy Co Ltd (100840.KS) is 8.2%.
| Range | Selected | |
| Cost of equity | 6.7% - 9.6% | 8.15% |
| Tax rate | 14.5% - 20.3% | 17.4% |
| Cost of debt | 4.0% - 5.1% | 4.55% |
| WACC | 6.7% - 9.6% | 8.2% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.63 | 0.82 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.7% | 9.6% |
| Tax rate | 14.5% | 20.3% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 5.1% |
| After-tax WACC | 6.7% | 9.6% |
| Selected WACC | 8.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 100840.KS | SNTEnergy Co Ltd | 0 | 1.13 | 1.12 |
| 000850.KS | Hwacheon Machine Tool Co Ltd | 0.47 | 0.51 | 0.37 |
| 004380.KS | Samick THK Co Ltd | 0.78 | 1.49 | 0.91 |
| 010040.KS | Korea Refractories Co Ltd | 0.6 | 0.5 | 0.33 |
| 015230.KS | Daechang Forging Co Ltd | 0.05 | 0.18 | 0.17 |
| 023160.KQ | TK Corp | 0.01 | 0.71 | 0.71 |
| 071670.KQ | A-Tech Solution Co Ltd | 1.6 | 1.13 | 0.49 |
| 071970.KS | STX Heavy Industries Co Ltd | 0 | 0.84 | 0.84 |
| 083650.KQ | BHI Co Ltd | 0.11 | 0.81 | 0.74 |
| 126880.KQ | JNK Heaters Co Ltd | 0.74 | 0.28 | 0.18 |
| Low | High | |
| Unlevered beta | 0.44 | 0.72 |
| Relevered beta | 0.45 | 0.73 |
| Adjusted relevered beta | 0.63 | 0.82 |
100840.KS'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 100840.KS:
cost_of_equity (8.15%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.63) + 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.