The WACC of Alpha Holdings Inc (117670.KQ) is 8.1%.
Range | Selected | |
Cost of equity | 7.1% - 11.0% | 9.05% |
Tax rate | 1.7% - 7.8% | 4.75% |
Cost of debt | 4.0% - 7.0% | 5.5% |
WACC | 6.3% - 10.0% | 8.1% |
Category | Low | High |
Long-term bond rate | 3.1% | 3.6% |
Equity market risk premium | 5.8% | 6.8% |
Adjusted beta | 0.68 | 1.02 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.1% | 11.0% |
Tax rate | 1.7% | 7.8% |
Debt/Equity ratio | 0.3 | 0.3 |
Cost of debt | 4.0% | 7.0% |
After-tax WACC | 6.3% | 10.0% |
Selected WACC | 8.1% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
117670.KQ | Alpha Holdings Inc | 0.3 | 0.45 | 0.35 |
033050.KQ | Jeongmoon Information Co Ltd | 0.27 | 0.41 | 0.33 |
052860.KQ | I&C Technology Co Ltd | 0.46 | 1.32 | 0.91 |
059120.KQ | Ajinextek Co Ltd | 0.01 | 1.12 | 1.11 |
066310.KQ | QSI Co Ltd | 0.01 | 0.82 | 0.82 |
078350.KQ | Hanyang Digitech Co Ltd | 0.12 | 1.77 | 1.59 |
087600.KQ | Pixelplus Co Ltd | 0.3 | 1 | 0.77 |
092600.KQ | NC& Co Ltd | 2.84 | 0.27 | 0.07 |
096640.KQ | Melfas Inc | 0.26 | 0.56 | 0.45 |
131760.KQ | Finetek Co Ltd | 0.84 | 0.31 | 0.17 |
Low | High | |
Unlevered beta | 0.41 | 0.79 |
Relevered beta | 0.52 | 1.03 |
Adjusted relevered beta | 0.68 | 1.02 |
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 117670.KQ:
cost_of_equity (9.05%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.68) + 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.