212560.KQ WACC - Weighted Average Cost of Capital
The WACC of Neooto Co Ltd (212560.KQ) is 7.4%.
| Range | Selected | |
| Cost of equity | 6.8% - 10.9% | 8.85% |
| Tax rate | 16.9% - 19.8% | 18.35% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.9% - 8.9% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.65 | 1 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 10.9% |
| Tax rate | 16.9% | 19.8% |
| Debt/Equity ratio | 0.39 | 0.39 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.9% | 8.9% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 212560.KQ | Neooto Co Ltd | 0.39 | 1.37 | 1.04 |
| 006660.KS | Samsung Climate Control Co Ltd | 0.02 | 0.76 | 0.75 |
| 008830.KQ | DaedongGear | 0.58 | 1.13 | 0.76 |
| 015260.KS | Automobile & PCB | 2.02 | 1.01 | 0.38 |
| 024740.KQ | Hanil Forging Industrial | 1.42 | 0.61 | 0.28 |
| 065500.KQ | Orient Precision Industries Inc | 0.22 | 0.01 | 0 |
| 080470.KQ | Sungchang Autotech Co Ltd | 1.67 | 0.78 | 0.33 |
| 090150.KQ | Kwangjin Wintec Co Ltd | 2 | 0.43 | 0.16 |
| 113810.KQ | Dgenx Co Ltd | 0.48 | 1.49 | 1.06 |
| 234100.KQ | Sewon Co Ltd | 0.07 | 1.08 | 1.02 |
| Low | High | |
| Unlevered beta | 0.36 | 0.75 |
| Relevered beta | 0.48 | 1 |
| Adjusted relevered beta | 0.65 | 1 |
212560.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 212560.KQ:
cost_of_equity (8.85%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.65) + 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.