123010.KQ
iA Networks Co Ltd
Price:  
1,013 
KRW
Volume:  
158,978
Korea, Republic of | Semiconductors & Semiconductor Equipment

123010.KQ WACC - Weighted Average Cost of Capital

The WACC of iA Networks Co Ltd (123010.KQ) is 6.5%.

The Cost of Equity of iA Networks Co Ltd (123010.KQ) is 7.25%.
The Cost of Debt of iA Networks Co Ltd (123010.KQ) is 5.6%.

RangeSelected
Cost of equity6.2% - 8.3%7.25%
Tax rate2.8% - 7.5%5.15%
Cost of debt4.2% - 7.0%5.6%
WACC5.3% - 7.6%6.5%
WACC

123010.KQ WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.530.62
Additional risk adjustments0.0%0.5%
Cost of equity6.2%8.3%
Tax rate2.8%7.5%
Debt/Equity ratio
0.660.66
Cost of debt4.2%7.0%
After-tax WACC5.3%7.6%
Selected WACC6.5%

123010.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 123010.KQ:

cost_of_equity (7.25%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.53) + 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.