123750.KQ WACC - Weighted Average Cost of Capital
The WACC of Alton Sports Co Ltd (123750.KQ) is 6.6%.
| Range | Selected | |
| Cost of equity | 5.4% - 8.4% | 6.9% |
| Tax rate | 0.1% - 5.5% | 2.8% |
| Cost of debt | 4.5% - 7.0% | 5.75% |
| WACC | 5.2% - 8.0% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.41 | 0.63 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 8.4% |
| Tax rate | 0.1% | 5.5% |
| Debt/Equity ratio | 0.32 | 0.32 |
| Cost of debt | 4.5% | 7.0% |
| After-tax WACC | 5.2% | 8.0% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 123750.KQ | Alton Sports Co Ltd | 0.32 | 0.09 | 0.07 |
| 024950.KQ | Samchuly Bicycle Co Ltd | 0.66 | 0.53 | 0.32 |
| 031860.KQ | NSN Co Ltd | 0.28 | 1.79 | 1.4 |
| 039830.KQ | Aurora World Corp | 5.21 | 0.62 | 0.1 |
| 050120.KQ | Liveplex Co Ltd | 0.05 | 0.4 | 0.38 |
| 056080.KQ | Yujin Robot Co Ltd | 0.01 | 1.6 | 1.59 |
| 066910.KQ | Sonokong Co Ltd | 0.49 | 1.48 | 1 |
| 381.HK | Kiu Hung International Holdings Ltd | 0.49 | -1.81 | -1.21 |
| 6858.HK | Honma Golf Ltd | 0.25 | 0.08 | 0.07 |
| N0Z.SI | Combine Will International Holdings Ltd | 2.75 | 0.1 | 0.03 |
| Low | High | |
| Unlevered beta | 0.09 | 0.34 |
| Relevered beta | 0.12 | 0.45 |
| Adjusted relevered beta | 0.41 | 0.63 |
123750.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 123750.KQ:
cost_of_equity (6.90%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.41) + 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.