227100.KQ WACC - Weighted Average Cost of Capital
The WACC of Design Co Ltd (227100.KQ) is 6.4%.
| Range | Selected | |
| Cost of equity | 5.6% - 8.2% | 6.9% |
| Tax rate | 4.0% - 5.0% | 4.5% |
| Cost of debt | 5.4% - 7.0% | 6.2% |
| WACC | 5.4% - 7.4% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.44 | 0.61 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 8.2% |
| Tax rate | 4.0% | 5.0% |
| Debt/Equity ratio | 1.2 | 1.2 |
| Cost of debt | 5.4% | 7.0% |
| After-tax WACC | 5.4% | 7.4% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 227100.KQ | Design Co Ltd | 1.2 | 0.39 | 0.18 |
| 009140.KS | Kyungin Electronics Co Ltd | 0 | 0.36 | 0.36 |
| 017250.KQ | Interm Corp | 1.11 | 0.19 | 0.09 |
| 025440.KQ | Daesung Eltec Co Ltd | 3.63 | 0 | 0 |
| 087260.KQ | Mobile Appliance Inc | 0.21 | 0.92 | 0.76 |
| 161570.KQ | The Midong Co Ltd | 1.02 | -0.39 | -0.2 |
| 167.HK | IDT International Ltd | 0.26 | 0.07 | 0.05 |
| 225190.KQ | Samyang Optics Co Ltd | 0.09 | -0.38 | -0.35 |
| 6225.TW | Aiptek International Inc | 0 | 0.21 | 0.21 |
| POWERFUL.NS | Powerful Technologies Ltd | 3.81 | 1.08 | 0.23 |
| Low | High | |
| Unlevered beta | 0.08 | 0.19 |
| Relevered beta | 0.16 | 0.42 |
| Adjusted relevered beta | 0.44 | 0.61 |
227100.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 227100.KQ:
cost_of_equity (6.90%) = 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.