The WACC of Opasnet Co Ltd (173130.KQ) is 8.8%.
| Range | Selected | |
| Cost of equity | 8.50% - 11.60% | 10.05% |
| Tax rate | 14.10% - 17.50% | 15.80% |
| Cost of debt | 4.80% - 8.70% | 6.75% |
| WACC | 7.3% - 10.4% | 8.8% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.93 | 1.11 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.50% | 11.60% |
| Tax rate | 14.10% | 17.50% |
| Debt/Equity ratio | 0.4 | 0.4 |
| Cost of debt | 4.80% | 8.70% |
| After-tax WACC | 7.3% | 10.4% |
| Selected WACC | 8.8% | |
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 173130.KQ:
cost_of_equity (10.05%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.93) + 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.