177830.KQ WACC - Weighted Average Cost of Capital
The WACC of Pavonine Co Ltd (177830.KQ) is 7.2%.
| Range | Selected | |
| Cost of equity | 10.2% - 14.8% | 12.5% |
| Tax rate | 10.6% - 14.2% | 12.4% |
| Cost of debt | 4.0% - 4.8% | 4.4% |
| WACC | 6.2% - 8.3% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 1.22 | 1.57 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.2% | 14.8% |
| Tax rate | 10.6% | 14.2% |
| Debt/Equity ratio | 1.54 | 1.54 |
| Cost of debt | 4.0% | 4.8% |
| After-tax WACC | 6.2% | 8.3% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 177830.KQ | Pavonine Co Ltd | 1.54 | 0.24 | 0.1 |
| 006140.KQ | PJ Electronics Co Ltd | 0.34 | 0.85 | 0.65 |
| 043260.KQ | Sungho Electronics Corp | 2.09 | 1.03 | 0.36 |
| 054040.KQ | Korea Computer Inc | 0 | 0.92 | 0.92 |
| 111870.KQ | Sambon Electronics Co Ltd | 0.37 | 1 | 0.75 |
| 1480.HK | Yan Tat Group Holdings Ltd | 0.25 | 0.51 | 0.41 |
| 174880.KQ | Jang Won Tech Co Ltd | 0.11 | 1.31 | 1.2 |
| 192650.KS | DreamTech Co Ltd | 0.51 | 1.18 | 0.81 |
| 200230.KQ | Telcon RF Pharmaceutical Inc | 0.41 | 1.25 | 0.91 |
| 290740.KQ | ActRo Co Ltd | 0.01 | 0.29 | 0.29 |
| Low | High | |
| Unlevered beta | 0.56 | 0.78 |
| Relevered beta | 1.33 | 1.85 |
| Adjusted relevered beta | 1.22 | 1.57 |
177830.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 177830.KQ:
cost_of_equity (12.50%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (1.22) + 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.