204630.KQ WACC - Weighted Average Cost of Capital
The WACC of Studio Santa Claus Entertainment Co Ltd (204630.KQ) is 7.9%.
| Range | Selected | |
| Cost of equity | 6.6% - 9.0% | 7.8% |
| Tax rate | 0.0% - 1.8% | 0.9% |
| Cost of debt | 7.0% - 9.3% | 8.15% |
| WACC | 6.8% - 9.1% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.6 | 0.73 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.6% | 9.0% |
| Tax rate | 0.0% | 1.8% |
| Debt/Equity ratio | 0.91 | 0.91 |
| Cost of debt | 7.0% | 9.3% |
| After-tax WACC | 6.8% | 9.1% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 204630.KQ | Studio Santa Claus Entertainment Co Ltd | 0.91 | -0.14 | -0.08 |
| 002420.KS | Century Co Ltd | 0.43 | 0.01 | 0.01 |
| 003560.KS | IHQ Inc | 1.78 | 1.63 | 0.58 |
| 032800.KQ | Fantagio Corp | 0.69 | 0.61 | 0.36 |
| 035900.KQ | JYP Entertainment Corp | 0 | 0.21 | 0.21 |
| 051780.KQ | CuroHoldings Co Ltd | 2.49 | 0.74 | 0.21 |
| 054780.KQ | KeyEast Co Ltd | 0.1 | 1.14 | 1.03 |
| 078860.KQ | IOKCompany Co Ltd | 0.11 | 0.66 | 0.59 |
| 173940.KQ | FNC Entertainment Co Ltd | 0.21 | 0.33 | 0.28 |
| 40E.SI | Spackman Entertainment Group Ltd | 1.09 | 0.33 | 0.16 |
| Low | High | |
| Unlevered beta | 0.21 | 0.31 |
| Relevered beta | 0.4 | 0.6 |
| Adjusted relevered beta | 0.6 | 0.73 |
204630.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 204630.KQ:
cost_of_equity (7.80%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.6) + 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.