242040.KQ
Namu Tech Co Ltd
Price:  
1,673.00 
KRW
Volume:  
250,981.00
Korea, Republic of | IT Services
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242040.KQ WACC - Weighted Average Cost of Capital

The WACC of Namu Tech Co Ltd (242040.KQ) is 8.8%.

The Cost of Equity of Namu Tech Co Ltd (242040.KQ) is 11.00%.
The Cost of Debt of Namu Tech Co Ltd (242040.KQ) is 5.50%.

Range Selected
Cost of equity 9.70% - 12.30% 11.00%
Tax rate 22.10% - 22.30% 22.20%
Cost of debt 4.00% - 7.00% 5.50%
WACC 7.5% - 10.0% 8.8%
WACC

242040.KQ WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 1.14 1.21
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.70% 12.30%
Tax rate 22.10% 22.30%
Debt/Equity ratio 0.5 0.5
Cost of debt 4.00% 7.00%
After-tax WACC 7.5% 10.0%
Selected WACC 8.8%

242040.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 242040.KQ:

cost_of_equity (11.00%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (1.14) + 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.