228670.KQ WACC - Weighted Average Cost of Capital
The WACC of Ray Co Ltd (228670.KQ) is 5.4%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.2% | 6.3% |
| Tax rate | 21.9% - 29.0% | 25.45% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.5% - 6.3% | 5.4% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.4 | 0.45 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.2% |
| Tax rate | 21.9% | 29.0% |
| Debt/Equity ratio | 0.67 | 0.67 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.5% | 6.3% |
| Selected WACC | 5.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 228670.KQ | Ray Co Ltd | 0.67 | 1.32 | 0.89 |
| 004080.KS | Shinhung Co Ltd | 0.03 | 0.02 | 0.02 |
| 035610.KQ | Solborn Inc | 0.03 | 0.68 | 0.66 |
| 048870.KQ | Synergy Innovation Co Ltd | 0.17 | 0.14 | 0.13 |
| 085370.KQ | Lutronic Corp | 0 | 0.62 | 0.61 |
| 115480.KQ | CU Medical Systems Inc | 0.99 | 0.21 | 0.12 |
| 150840.KQ | IntroMedic Co Ltd | 0.01 | 0.04 | 0.04 |
| 206640.KQ | Boditech Med Inc | 0.03 | 0.03 | 0.03 |
| 219750.KQ | GTG Wellness Co Ltd | 0.14 | -0.04 | -0.04 |
| 241820.KQ | PCL Inc | 0.61 | 0.12 | 0.09 |
| Low | High | |
| Unlevered beta | 0.07 | 0.12 |
| Relevered beta | 0.1 | 0.18 |
| Adjusted relevered beta | 0.4 | 0.45 |
228670.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 228670.KQ:
cost_of_equity (6.30%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.4) + 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.