214870.KQ WACC - Weighted Average Cost of Capital
The WACC of NewGLab Co Ltd (214870.KQ) is 6.2%.
| Range | Selected | |
| Cost of equity | 5.6% - 7.6% | 6.6% |
| Tax rate | 3.4% - 3.6% | 3.5% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.1% - 7.3% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.44 | 0.52 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 7.6% |
| Tax rate | 3.4% | 3.6% |
| Debt/Equity ratio | 0.43 | 0.43 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.1% | 7.3% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 214870.KQ | NewGLab Co Ltd | 0.43 | -1.13 | -0.8 |
| 002230.KQ | PS Tec Co Ltd | 0.35 | 0.25 | 0.19 |
| 044780.KQ | HK Co Ltd | 0.69 | 0.45 | 0.27 |
| 057540.KQ | Omnisystem Co Ltd | 0.11 | 0.18 | 0.16 |
| 093190.KQ | Bixolon Co Ltd | 0.04 | 0.22 | 0.21 |
| 137940.KQ | Next Eye Co Ltd | 0.28 | -0.27 | -0.21 |
| 143160.KQ | Intelligent Digital Integrated Security Co Ltd | 0.3 | 0.04 | 0.03 |
| 181340.KQ | IsMedia Co Ltd | 0.08 | 1.42 | 1.31 |
| 224110.KQ | Atec T& Co Ltd | 0.26 | -0.1 | -0.08 |
| 300120.KQ | LaonPeople Inc | 0.3 | 1.18 | 0.92 |
| Low | High | |
| Unlevered beta | 0.11 | 0.2 |
| Relevered beta | 0.16 | 0.28 |
| Adjusted relevered beta | 0.44 | 0.52 |
214870.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 214870.KQ:
cost_of_equity (6.60%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.44) + 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.