161570.KQ
The Midong Co Ltd
Price:  
366.00 
KRW
Volume:  
1,399,070.00
Korea, Republic of | Household Durables
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161570.KQ WACC - Weighted Average Cost of Capital

The WACC of The Midong Co Ltd (161570.KQ) is 5.2%.

The Cost of Equity of The Midong Co Ltd (161570.KQ) is 6.65%.
The Cost of Debt of The Midong Co Ltd (161570.KQ) is 5.00%.

Range Selected
Cost of equity 5.40% - 7.90% 6.65%
Tax rate 22.10% - 22.30% 22.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.6% - 5.9% 5.2%
WACC

161570.KQ WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.31 0.48
Additional risk adjustments 0.5% 1.0%
Cost of equity 5.40% 7.90%
Tax rate 22.10% 22.30%
Debt/Equity ratio 1.02 1.02
Cost of debt 5.00% 5.00%
After-tax WACC 4.6% 5.9%
Selected WACC 5.2%

161570.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 161570.KQ:

cost_of_equity (6.65%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.31) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.