208710.KQ WACC - Weighted Average Cost of Capital
The WACC of Biolog Device Co Ltd (208710.KQ) is 9.5%.
| Range | Selected | |
| Cost of equity | 10.5% - 13.9% | 12.2% |
| Tax rate | 9.3% - 33.5% | 21.4% |
| Cost of debt | 4.4% - 7.0% | 5.7% |
| WACC | 8.3% - 10.8% | 9.5% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 1.27 | 1.44 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.5% | 13.9% |
| Tax rate | 9.3% | 33.5% |
| Debt/Equity ratio | 0.51 | 0.51 |
| Cost of debt | 4.4% | 7.0% |
| After-tax WACC | 8.3% | 10.8% |
| Selected WACC | 9.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 208710.KQ | Biolog Device Co Ltd | 0.51 | 1.43 | 0.99 |
| 036010.KQ | ABCO Electronics Co Ltd | 0.18 | 1.88 | 1.63 |
| 049120.KQ | Fine DNC Co Ltd | 0.67 | 0.54 | 0.34 |
| 065690.KQ | Pakers Co Ltd | 2.82 | 1.79 | 0.52 |
| 085670.KQ | Newflex Technology Co Ltd | 0.27 | 1.6 | 1.3 |
| 094970.KQ | JMT Co Ltd | 0.14 | 1.07 | 0.96 |
| 106520.KQ | Digital Optics Co Ltd | 0.34 | 0.17 | 0.13 |
| 174880.KQ | Jang Won Tech Co Ltd | 0.11 | 1.31 | 1.2 |
| 193250.KQ | YJM Games Co Ltd | 0.14 | 1.25 | 1.12 |
| 214430.KQ | i3system Inc | 0.01 | 1.8 | 1.78 |
| Low | High | |
| Unlevered beta | 0.98 | 1.15 |
| Relevered beta | 1.4 | 1.66 |
| Adjusted relevered beta | 1.27 | 1.44 |
208710.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 208710.KQ:
cost_of_equity (12.20%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (1.27) + 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.