248170.KS WACC - Weighted Average Cost of Capital
The WACC of Sempio Foods Co (248170.KS) is 6.0%.
| Range | Selected | |
| Cost of equity | 5.7% - 7.7% | 6.7% |
| Tax rate | 9.6% - 10.0% | 9.8% |
| Cost of debt | 4.0% - 6.7% | 5.35% |
| WACC | 4.9% - 7.1% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.45 | 0.53 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 7.7% |
| Tax rate | 9.6% | 10.0% |
| Debt/Equity ratio | 0.59 | 0.59 |
| Cost of debt | 4.0% | 6.7% |
| After-tax WACC | 4.9% | 7.1% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 248170.KS | Sempio Foods Co | 0.59 | 0.47 | 0.31 |
| 002600.KS | Choheung Corp | 2.13 | 0.15 | 0.05 |
| 003310.KQ | Daejoo Inc | 0.11 | -0.39 | -0.35 |
| 003680.KS | Hansung Enterprise Co Ltd | 3.44 | 0.48 | 0.12 |
| 003920.KS | Namyang Dairy Products Co Ltd | 0.02 | 0.12 | 0.11 |
| 005860.KQ | Hanil Feed Co Ltd | 0.22 | 0.71 | 0.59 |
| 014710.KS | Sajo Sea Food Co Ltd | 0.49 | 0.26 | 0.18 |
| 088910.KQ | Dongwoo Farm To Table Co Ltd | 0.92 | 0.38 | 0.21 |
| 264900.KS | Crown Confectionery Co Ltd | 0.16 | 0.48 | 0.41 |
| 311390.KQ | Neo Cremar Co Ltd | 0.25 | -0.31 | -0.25 |
| Low | High | |
| Unlevered beta | 0.12 | 0.19 |
| Relevered beta | 0.18 | 0.3 |
| Adjusted relevered beta | 0.45 | 0.53 |
248170.KS'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 248170.KS:
cost_of_equity (6.70%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.45) + 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.