The WACC of Asia Business Daily Co Ltd (127710.KQ) is 135.7%.
| Range | Selected | |
| Cost of equity | 7.60% - 10.00% | 8.80% |
| Tax rate | 10.50% - 12.70% | 11.60% |
| Cost of debt | 7.00% - 365.90% | 186.45% |
| WACC | 6.5% - 264.8% | 135.7% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.78 | 0.87 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.60% | 10.00% |
| Tax rate | 10.50% | 12.70% |
| Debt/Equity ratio | 4.67 | 4.67 |
| Cost of debt | 7.00% | 365.90% |
| After-tax WACC | 6.5% | 264.8% |
| Selected WACC | 135.7% | |
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 127710.KQ:
cost_of_equity (8.80%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.78) + 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.