110990.KQ WACC - Weighted Average Cost of Capital

The WACC of Digital Imaging Technology Inc (110990.KQ) is 11.2%.

The Cost of Equity of Digital Imaging Technology Inc (110990.KQ) is 11.25%.

The Cost of Debt of Digital Imaging Technology Inc (110990.KQ) is 4.25%.

	Range	Selected
Cost of equity	9.90% - 12.60%	11.25%
Tax rate	18.30% - 39.20%	28.75%
Cost of debt	4.00% - 4.50%	4.25%
WACC	9.9% - 12.5%	11.2%

WACC

110990.KQ WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	1.17	1.24

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.90%	12.60%

Tax rate	18.30%	39.20%
Debt/Equity ratio	0	0
Cost of debt	4.00%	4.50%

After-tax WACC	9.9%	12.5%


Selected WACC	11.2%

110990.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 110990.KQ:

cost_of_equity (11.25%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (1.17) + 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.