137400.KQ WACC - Weighted Average Cost of Capital
The WACC of People & Technology Inc (137400.KQ) is 8.4%.
| Range | Selected | |
| Cost of equity | 7.7% - 11.0% | 9.35% |
| Tax rate | 19.8% - 22.0% | 20.9% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.0% - 9.7% | 8.4% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.79 | 1.01 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.7% | 11.0% |
| Tax rate | 19.8% | 22.0% |
| Debt/Equity ratio | 0.2 | 0.2 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.0% | 9.7% |
| Selected WACC | 8.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 137400.KQ | People & Technology Inc | 0.2 | 1.58 | 1.37 |
| 004380.KS | Samick THK Co Ltd | 0.78 | 1.49 | 0.92 |
| 009160.KS | SIMPAC Inc | 0.95 | 0.55 | 0.31 |
| 019210.KQ | YG-1 Co Ltd | 2.75 | 0.46 | 0.15 |
| 036890.KQ | Jinsung TEC | 0.51 | 0.56 | 0.4 |
| 044490.KQ | Taewoong Co Ltd | 0.33 | 0.92 | 0.73 |
| 054950.KQ | JVM Co Ltd | 0.1 | 1.02 | 0.94 |
| 064820.KQ | Cape Industries Ltd | 7.11 | 0.6 | 0.09 |
| 081000.KS | Iljin Diamond Co Ltd | 0.09 | 0.91 | 0.85 |
| 100840.KS | SNTEnergy Co Ltd | 0 | 1.13 | 1.12 |
| Low | High | |
| Unlevered beta | 0.6 | 0.88 |
| Relevered beta | 0.69 | 1.01 |
| Adjusted relevered beta | 0.79 | 1.01 |
137400.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 137400.KQ:
cost_of_equity (9.35%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.79) + 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.