254120.KQ
Xavis Co Ltd
Price:  
1,660.00 
KRW
Volume:  
301,828.00
Korea, Republic of | Electronic Equipment, Instruments & Components
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254120.KQ WACC - Weighted Average Cost of Capital

The WACC of Xavis Co Ltd (254120.KQ) is 8.3%.

The Cost of Equity of Xavis Co Ltd (254120.KQ) is 9.00%.
The Cost of Debt of Xavis Co Ltd (254120.KQ) is 4.25%.

Range Selected
Cost of equity 7.70% - 10.30% 9.00%
Tax rate 22.10% - 22.30% 22.20%
Cost of debt 4.00% - 4.50% 4.25%
WACC 7.2% - 9.5% 8.3%
WACC

254120.KQ WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.8 0.92
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 10.30%
Tax rate 22.10% 22.30%
Debt/Equity ratio 0.14 0.14
Cost of debt 4.00% 4.50%
After-tax WACC 7.2% 9.5%
Selected WACC 8.3%

254120.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 254120.KQ:

cost_of_equity (9.00%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.8) + 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.