138070.KQ WACC - Weighted Average Cost of Capital
The WACC of Sinjin SM Co Ltd (138070.KQ) is 6.7%.
| Range | Selected | |
| Cost of equity | 6.1% - 8.1% | 7.1% |
| Tax rate | 17.1% - 23.5% | 20.3% |
| Cost of debt | 4.0% - 11.6% | 7.8% |
| WACC | 5.1% - 8.4% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.51 | 0.59 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 8.1% |
| Tax rate | 17.1% | 23.5% |
| Debt/Equity ratio | 0.52 | 0.52 |
| Cost of debt | 4.0% | 11.6% |
| After-tax WACC | 5.1% | 8.4% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 138070.KQ | Sinjin SM Co Ltd | 0.52 | 1.61 | 1.15 |
| 001770.KS | Shinhwa Silup Co Ltd | 0.59 | 0.29 | 0.2 |
| 023440.KQ | JeilSteel MFG Co | 0.36 | -0.35 | -0.27 |
| 023790.KQ | Dongil Steel Co Ltd | 2.15 | 0.28 | 0.1 |
| 025890.KS | Hankook Steel Co Ltd | 0.11 | 0.2 | 0.18 |
| 026910.KQ | Kwang Jin Ind Co Ltd | 3.54 | 0.74 | 0.2 |
| 037370.KQ | EG Corp | 2.05 | 0.96 | 0.37 |
| 109860.KQ | Dongil Metal Co Ltd | 0.15 | 0.44 | 0.39 |
| 120030.KS | Chosun Welding Pohang Co Ltd | 0.01 | 0.22 | 0.21 |
| 192390.KQ | Winhitech Co Ltd | 1.53 | 1.71 | 0.78 |
| Low | High | |
| Unlevered beta | 0.2 | 0.28 |
| Relevered beta | 0.27 | 0.39 |
| Adjusted relevered beta | 0.51 | 0.59 |
138070.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 138070.KQ:
cost_of_equity (7.10%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.51) + 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.