258830.KQ WACC - Weighted Average Cost of Capital

The WACC of Sejong Medical Co Ltd (258830.KQ) is 24.5%.

The Cost of Equity of Sejong Medical Co Ltd (258830.KQ) is 6.25%.

The Cost of Debt of Sejong Medical Co Ltd (258830.KQ) is 38.65%.

	Range	Selected
Cost of equity	5.30% - 7.20%	6.25%
Tax rate	6.30% - 9.80%	8.05%
Cost of debt	23.10% - 54.20%	38.65%
WACC	15.6% - 33.4%	24.5%

WACC

258830.KQ WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.38	0.46

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.30%	7.20%

Tax rate	6.30%	9.80%
Debt/Equity ratio	1.7	1.7
Cost of debt	23.10%	54.20%

After-tax WACC	15.6%	33.4%


Selected WACC	24.5%

258830.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 258830.KQ:

cost_of_equity (6.25%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.38) + 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.