224060.KQ
CODI-M Co Ltd
Price:  
3,235.00 
KRW
Volume:  
419,354.00
Korea, Republic of | Semiconductors & Semiconductor Equipment
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224060.KQ WACC - Weighted Average Cost of Capital

The WACC of CODI-M Co Ltd (224060.KQ) is 6.9%.

The Cost of Equity of CODI-M Co Ltd (224060.KQ) is 10.65%.
The Cost of Debt of CODI-M Co Ltd (224060.KQ) is 6.10%.

Range Selected
Cost of equity 8.50% - 12.80% 10.65%
Tax rate 3.70% - 6.20% 4.95%
Cost of debt 5.20% - 7.00% 6.10%
WACC 5.8% - 8.0% 6.9%
WACC

224060.KQ WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.93 1.29
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.50% 12.80%
Tax rate 3.70% 6.20%
Debt/Equity ratio 3.51 3.51
Cost of debt 5.20% 7.00%
After-tax WACC 5.8% 8.0%
Selected WACC 6.9%

224060.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 224060.KQ:

cost_of_equity (10.65%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.93) + 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.