204320.KS
Mando Corp
Price:  
34,750 
KRW
Volume:  
225,666
Korea, Republic of | Auto Components

204320.KS WACC - Weighted Average Cost of Capital

The WACC of Mando Corp (204320.KS) is 6.3%.

The Cost of Equity of Mando Corp (204320.KS) is 9.8%.
The Cost of Debt of Mando Corp (204320.KS) is 6.15%.

RangeSelected
Cost of equity8.1% - 11.5%9.8%
Tax rate36.8% - 43.7%40.25%
Cost of debt4.0% - 8.3%6.15%
WACC5.0% - 7.6%6.3%
WACC

204320.KS WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.871.09
Additional risk adjustments0.0%0.5%
Cost of equity8.1%11.5%
Tax rate36.8%43.7%
Debt/Equity ratio
1.311.31
Cost of debt4.0%8.3%
After-tax WACC5.0%7.6%
Selected WACC6.3%

204320.KS'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 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.