The WACC of Mando Corp (204320.KS) is 6.3%.
Range | Selected | |
Cost of equity | 8.1% - 11.5% | 9.8% |
Tax rate | 36.8% - 43.7% | 40.25% |
Cost of debt | 4.0% - 8.3% | 6.15% |
WACC | 5.0% - 7.6% | 6.3% |
Category | Low | High |
Long-term bond rate | 3.1% | 3.6% |
Equity market risk premium | 5.8% | 6.8% |
Adjusted beta | 0.87 | 1.09 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.1% | 11.5% |
Tax rate | 36.8% | 43.7% |
Debt/Equity ratio | 1.31 | 1.31 |
Cost of debt | 4.0% | 8.3% |
After-tax WACC | 5.0% | 7.6% |
Selected WACC | 6.3% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
204320.KS | Mando Corp | 1.31 | 0.75 | 0.42 |
005850.KS | SL Corp | 0.22 | 1.26 | 1.12 |
007860.KS | Seoyon Co Ltd | 3.01 | 1.27 | 0.45 |
011210.KS | Hyundai Wia Corp | 0.89 | 1.33 | 0.87 |
015750.KQ | Sungwoo Hitech Co Ltd | 3.75 | 1.3 | 0.4 |
018880.KS | Hanon Systems | 2.08 | 1 | 0.45 |
024900.KS | Duckyang Ind Co Ltd | 0.66 | 1.16 | 0.83 |
036530.KS | SNT Holdings Co Ltd | 0 | 0.73 | 0.72 |
122690.KQ | Seojin Automotive Co Ltd | 13.77 | 1.03 | 0.11 |
200880.KS | Seoyon E Hwa Co Ltd | 2.21 | 1.33 | 0.57 |
Low | High | |
Unlevered beta | 0.45 | 0.63 |
Relevered beta | 0.81 | 1.13 |
Adjusted relevered beta | 0.87 | 1.09 |
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 204320.KS:
cost_of_equity (9.80%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.87) + 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.