128540.KQ
EcoCab Co Ltd
Price:  
1,667.00 
KRW
Volume:  
75,561.00
Korea, Republic of | Auto Components
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

128540.KQ WACC - Weighted Average Cost of Capital

The WACC of EcoCab Co Ltd (128540.KQ) is 7.3%.

The Cost of Equity of EcoCab Co Ltd (128540.KQ) is 11.40%.
The Cost of Debt of EcoCab Co Ltd (128540.KQ) is 4.40%.

Range Selected
Cost of equity 9.40% - 13.40% 11.40%
Tax rate 13.40% - 31.60% 22.50%
Cost of debt 4.30% - 4.50% 4.40%
WACC 6.5% - 8.1% 7.3%
WACC

128540.KQ WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 1.09 1.36
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.40% 13.40%
Tax rate 13.40% 31.60%
Debt/Equity ratio 1.04 1.04
Cost of debt 4.30% 4.50%
After-tax WACC 6.5% 8.1%
Selected WACC 7.3%

128540.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 128540.KQ:

cost_of_equity (11.40%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (1.09) + 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.