123010.KQ WACC - Weighted Average Cost of Capital
The WACC of iA Networks Co Ltd (123010.KQ) is 6.5%.
| Range | Selected | |
| Cost of equity | 6.2% - 8.3% | 7.25% |
| Tax rate | 2.8% - 7.5% | 5.15% |
| Cost of debt | 4.2% - 7.0% | 5.6% |
| WACC | 5.3% - 7.6% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.53 | 0.62 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 8.3% |
| Tax rate | 2.8% | 7.5% |
| Debt/Equity ratio | 0.66 | 0.66 |
| Cost of debt | 4.2% | 7.0% |
| After-tax WACC | 5.3% | 7.6% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 123010.KQ | iA Networks Co Ltd | 0.66 | 0.49 | 0.3 |
| 036090.KQ | Wizit Co Ltd | 1.74 | 0.51 | 0.19 |
| 050090.KQ | Phoenix Materials Co Ltd | 0.01 | 0.18 | 0.18 |
| 054620.KQ | APS Holdings Corp | 1.33 | 0.54 | 0.24 |
| 073570.KQ | WI Co Ltd | 0.02 | 0.99 | 0.97 |
| 224060.KQ | CODI-M Co Ltd | 3.61 | 0.56 | 0.12 |
| 253590.KQ | Neosem Inc | 0.01 | 1.79 | 1.76 |
| 256630.KQ | Ponit Engineering Co Ltd | 0.12 | 0.2 | 0.18 |
| 306620.KQ | NeonTech Co Ltd | 0.58 | 0.51 | 0.33 |
| 320000.KQ | WinTec Co Ltd | 0.1 | 0.05 | 0.05 |
| Low | High | |
| Unlevered beta | 0.19 | 0.26 |
| Relevered beta | 0.3 | 0.43 |
| Adjusted relevered beta | 0.53 | 0.62 |
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.