170790.KQ
Piolink Inc
Price:  
8,290 
KRW
Volume:  
14,364
Korea, Republic of | Communications Equipment

170790.KQ WACC - Weighted Average Cost of Capital

The WACC of Piolink Inc (170790.KQ) is 8.0%.

The Cost of Equity of Piolink Inc (170790.KQ) is 8.05%.
The Cost of Debt of Piolink Inc (170790.KQ) is 6.1%.

RangeSelected
Cost of equity7.0% - 9.1%8.05%
Tax rate8.2% - 16.5%12.35%
Cost of debt5.2% - 7.0%6.1%
WACC7.0% - 9.1%8.0%
WACC

170790.KQ WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.670.74
Additional risk adjustments0.0%0.5%
Cost of equity7.0%9.1%
Tax rate8.2%16.5%
Debt/Equity ratio
0.010.01
Cost of debt5.2%7.0%
After-tax WACC7.0%9.1%
Selected WACC8.0%

170790.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 170790.KQ:

cost_of_equity (8.05%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.67) + 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.