141070.KQ WACC - Weighted Average Cost of Capital

The WACC of Maxrotec Co Ltd (141070.KQ) is 8.6%.

The Cost of Equity of Maxrotec Co Ltd (141070.KQ) is 33.95%.

The Cost of Debt of Maxrotec Co Ltd (141070.KQ) is 5.50%.

	Range	Selected
Cost of equity	28.50% - 39.40%	33.95%
Tax rate	1.50% - 4.80%	3.15%
Cost of debt	4.00% - 7.00%	5.50%
WACC	6.8% - 10.5%	8.6%

WACC

141070.KQ WACC calculation

Category	Low	High

Long-term bond rate	3.5%	4.0%
Equity market risk premium	5.2%	6.2%
Adjusted beta	4.78	5.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	28.50%	39.40%

Tax rate	1.50%	4.80%
Debt/Equity ratio	7.56	7.56
Cost of debt	4.00%	7.00%

After-tax WACC	6.8%	10.5%


Selected WACC	8.6%

141070.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 141070.KQ:

cost_of_equity (33.95%) = risk_free_rate (3.75%) + equity_risk_premium (5.70%) * adjusted_beta (4.78) + 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.