109860.KQ
Dongil Metal Co Ltd
Price:  
8,400.00 
KRW
Volume:  
396.00
Korea, Republic of | Metals & Mining
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109860.KQ WACC - Weighted Average Cost of Capital

The WACC of Dongil Metal Co Ltd (109860.KQ) is 7.2%.

The Cost of Equity of Dongil Metal Co Ltd (109860.KQ) is 7.50%.
The Cost of Debt of Dongil Metal Co Ltd (109860.KQ) is 7.00%.

Range Selected
Cost of equity 6.40% - 8.60% 7.50%
Tax rate 21.50% - 21.80% 21.65%
Cost of debt 7.00% - 7.00% 7.00%
WACC 6.3% - 8.2% 7.2%
WACC

109860.KQ WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.57 0.66
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.40% 8.60%
Tax rate 21.50% 21.80%
Debt/Equity ratio 0.14 0.14
Cost of debt 7.00% 7.00%
After-tax WACC 6.3% 8.2%
Selected WACC 7.2%

109860.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 109860.KQ:

cost_of_equity (7.50%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.57) + 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.