140860.KQ WACC - Weighted Average Cost of Capital
The WACC of Park Systems Corp (140860.KQ) is 9.4%.
| Range | Selected | |
| Cost of equity | 8.2% - 10.9% | 9.55% |
| Tax rate | 8.5% - 9.4% | 8.95% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 8.1% - 10.8% | 9.4% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.88 | 1 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.2% | 10.9% |
| Tax rate | 8.5% | 9.4% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 8.1% | 10.8% |
| Selected WACC | 9.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 140860.KQ | Park Systems Corp | 0.02 | 1.01 | 0.99 |
| 032820.KQ | Woori Technology Inc | 0.29 | 1.24 | 0.98 |
| 090360.KQ | Robostar Co Ltd | 0 | 1.32 | 1.32 |
| 121800.KQ | Vidente Co Ltd | 0.08 | 1.49 | 1.39 |
| 143160.KQ | Intelligent Digital Integrated Security Co Ltd | 0.33 | 0.02 | 0.02 |
| 181340.KQ | IsMedia Co Ltd | 0.08 | 1.42 | 1.32 |
| 214870.KQ | NewGLab Co Ltd | 0.43 | -1.13 | -0.82 |
| 300120.KQ | LaonPeople Inc | 0.43 | 1.14 | 0.82 |
| 302430.KQ | Innometry Co Ltd | 0.01 | 0.78 | 0.78 |
| 347890.KQ | M2I Corporation | 0 | 0.47 | 0.47 |
| Low | High | |
| Unlevered beta | 0.8 | 0.98 |
| Relevered beta | 0.82 | 1 |
| Adjusted relevered beta | 0.88 | 1 |
140860.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 140860.KQ:
cost_of_equity (9.55%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.88) + 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.