117670.KQ
Alpha Holdings Inc
Price:  
945 
KRW
Volume:  
3,406,040
Korea, Republic of | Semiconductors & Semiconductor Equipment

117670.KQ WACC - Weighted Average Cost of Capital

The WACC of Alpha Holdings Inc (117670.KQ) is 8.1%.

The Cost of Equity of Alpha Holdings Inc (117670.KQ) is 9.05%.
The Cost of Debt of Alpha Holdings Inc (117670.KQ) is 5.5%.

RangeSelected
Cost of equity7.1% - 11.0%9.05%
Tax rate1.7% - 7.8%4.75%
Cost of debt4.0% - 7.0%5.5%
WACC6.3% - 10.0%8.1%
WACC

117670.KQ WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.681.02
Additional risk adjustments0.0%0.5%
Cost of equity7.1%11.0%
Tax rate1.7%7.8%
Debt/Equity ratio
0.30.3
Cost of debt4.0%7.0%
After-tax WACC6.3%10.0%
Selected WACC8.1%

117670.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 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.