115570.KQ WACC - Weighted Average Cost of Capital
The WACC of StarFlex Co Ltd (115570.KQ) is 5.7%.
| Range | Selected | |
| Cost of equity | 6.1% - 9.1% | 7.6% |
| Tax rate | 16.5% - 36.8% | 26.65% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.0% - 6.5% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.51 | 0.73 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 9.1% |
| Tax rate | 16.5% | 36.8% |
| Debt/Equity ratio | 0.69 | 0.69 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.0% | 6.5% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 115570.KQ | StarFlex Co Ltd | 0.69 | 1.04 | 0.69 |
| 014440.KS | Youngbo Chemical Co Ltd | 0 | -0.3 | -0.3 |
| 024890.KS | Daewon Chemical Co Ltd | 2.04 | 0.37 | 0.15 |
| 036640.KQ | HRS Co Ltd | 0.01 | 0.39 | 0.39 |
| 036670.KQ | KCI Ltd | 0.02 | 0.54 | 0.54 |
| 049550.KQ | InkTec Co Ltd | 0.87 | 0.29 | 0.17 |
| 078140.KQ | DaebongLS Co Ltd | 0.33 | 0.51 | 0.41 |
| 091970.KQ | Nano Chem Tech Inc | 0.67 | -0.44 | -0.29 |
| 101240.KQ | CQV Co Ltd | 0.38 | 0.89 | 0.69 |
| 187790.KQ | Nano Co Ltd | 0.65 | 0.27 | 0.18 |
| Low | High | |
| Unlevered beta | 0.18 | 0.4 |
| Relevered beta | 0.27 | 0.6 |
| Adjusted relevered beta | 0.51 | 0.73 |
115570.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 115570.KQ:
cost_of_equity (7.60%) = 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.