214320.KS
Innocean Worldwide Inc
Price:  
20,800.00 
KRW
Volume:  
59,979.00
Korea, Republic of | Media
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214320.KS WACC - Weighted Average Cost of Capital

The WACC of Innocean Worldwide Inc (214320.KS) is 8.6%.

The Cost of Equity of Innocean Worldwide Inc (214320.KS) is 10.40%.
The Cost of Debt of Innocean Worldwide Inc (214320.KS) is 4.25%.

Range Selected
Cost of equity 7.60% - 13.20% 10.40%
Tax rate 29.20% - 30.30% 29.75%
Cost of debt 4.00% - 4.50% 4.25%
WACC 6.5% - 10.8% 8.6%
WACC

214320.KS WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.78 1.34
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.60% 13.20%
Tax rate 29.20% 30.30%
Debt/Equity ratio 0.31 0.31
Cost of debt 4.00% 4.50%
After-tax WACC 6.5% 10.8%
Selected WACC 8.6%

214320.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 214320.KS:

cost_of_equity (10.40%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.78) + 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.