The WACC of Samkee Corp (122350.KQ) is 8.3%.
| Range | Selected | |
| Cost of equity | 11.40% - 15.30% | 13.35% |
| Tax rate | 35.50% - 48.10% | 41.80% |
| Cost of debt | 4.20% - 23.10% | 13.65% |
| WACC | 4.1% - 12.5% | 8.3% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 1.44 | 1.64 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.40% | 15.30% |
| Tax rate | 35.50% | 48.10% |
| Debt/Equity ratio | 5.62 | 5.62 |
| Cost of debt | 4.20% | 23.10% |
| After-tax WACC | 4.1% | 12.5% |
| Selected WACC | 8.3% | |
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 122350.KQ:
cost_of_equity (13.35%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (1.44) + 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.