197140.KQ WACC - Weighted Average Cost of Capital
The WACC of Digicap Co Ltd (197140.KQ) is 6.9%.
| Range | Selected | |
| Cost of equity | 6.0% - 7.9% | 6.95% |
| Tax rate | 5.1% - 22.1% | 13.6% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.9% - 7.8% | 6.9% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.5 | 0.56 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 7.9% |
| Tax rate | 5.1% | 22.1% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.9% | 7.8% |
| Selected WACC | 6.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 197140.KQ | Digicap Co Ltd | 0.03 | 0.67 | 0.65 |
| 012510.KS | Duzon Bizon Co Ltd | 0.17 | 0.25 | 0.21 |
| 067920.KQ | Igloo Security Inc | 0.03 | 0.33 | 0.32 |
| 131090.KQ | Secuve Co Ltd | 0 | 0.37 | 0.37 |
| 213090.KQ | Mirae Technology Co Ltd | 0.06 | 0.94 | 0.89 |
| 222810.KQ | Midas AI Co Ltd | 0.33 | 0.18 | 0.13 |
| 258790.KQ | SoftCamp Co Ltd | 0.32 | -0.58 | -0.45 |
| 263860.KQ | Genians Inc | 0.01 | 0.26 | 0.26 |
| 3816.T | Daiwa Computer Co Ltd | 0.02 | 0.49 | 0.48 |
| 8178.HK | China Information Technology Development Ltd | 0.28 | 0.22 | 0.17 |
| Low | High | |
| Unlevered beta | 0.24 | 0.34 |
| Relevered beta | 0.25 | 0.34 |
| Adjusted relevered beta | 0.5 | 0.56 |
197140.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 197140.KQ:
cost_of_equity (6.95%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.5) + 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.