173130.KQ WACC - Weighted Average Cost of Capital
The WACC of Opasnet Co Ltd (173130.KQ) is 8.9%.
| Range | Selected | |
| Cost of equity | 8.7% - 11.7% | 10.2% |
| Tax rate | 14.1% - 17.5% | 15.8% |
| Cost of debt | 4.8% - 8.7% | 6.75% |
| WACC | 7.4% - 10.4% | 8.9% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.96 | 1.12 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.7% | 11.7% |
| Tax rate | 14.1% | 17.5% |
| Debt/Equity ratio | 0.4 | 0.4 |
| Cost of debt | 4.8% | 8.7% |
| After-tax WACC | 7.4% | 10.4% |
| Selected WACC | 8.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 173130.KQ | Opasnet Co Ltd | 0.4 | 0.26 | 0.2 |
| 010280.KQ | SsangYong Information & Communications Corp | 0.71 | -0.16 | -0.1 |
| 029480.KQ | Lix Solution Co Ltd | 0.28 | 1.39 | 1.13 |
| 042500.KQ | RingNet Co Ltd | 0 | 0.35 | 0.35 |
| 052460.KQ | Icraft Co Ltd | 0.38 | 1.12 | 0.85 |
| 053980.KQ | Osangjaiel Co Ltd | 0 | 0.83 | 0.83 |
| 115500.KQ | Korea Computer & Systems Inc | 0 | 1.17 | 1.16 |
| 286940.KS | Lotte Data Communication Co | 0.69 | 1.49 | 0.94 |
| 307950.KS | Hyundai Autoever Corp | 0.06 | 1.05 | 1 |
| 8229.HK | Future Data Group Ltd | 0.04 | 0.55 | 0.53 |
| Low | High | |
| Unlevered beta | 0.71 | 0.89 |
| Relevered beta | 0.94 | 1.18 |
| Adjusted relevered beta | 0.96 | 1.12 |
173130.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 173130.KQ:
cost_of_equity (10.20%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.96) + 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.