101000.KQ
Sangsangin Industry Co Ltd
Price:  
2,200 
KRW
Volume:  
237,614
Korea, Republic of | Machinery

101000.KQ WACC - Weighted Average Cost of Capital

The WACC of Sangsangin Industry Co Ltd (101000.KQ) is 6.7%.

The Cost of Equity of Sangsangin Industry Co Ltd (101000.KQ) is 7.3%.
The Cost of Debt of Sangsangin Industry Co Ltd (101000.KQ) is 5.5%.

RangeSelected
Cost of equity6.1% - 8.5%7.3%
Tax rate22.1% - 22.3%22.2%
Cost of debt4.0% - 7.0%5.5%
WACC5.5% - 7.9%6.7%
WACC

101000.KQ WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.510.65
Additional risk adjustments0.0%0.5%
Cost of equity6.1%8.5%
Tax rate22.1%22.3%
Debt/Equity ratio
0.260.26
Cost of debt4.0%7.0%
After-tax WACC5.5%7.9%
Selected WACC6.7%

101000.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 101000.KQ:

cost_of_equity (7.30%) = 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.