263690.KQ WACC - Weighted Average Cost of Capital
The WACC of DRGem Corp (263690.KQ) is 7.8%.
| Range | Selected | |
| Cost of equity | 7.5% - 10.2% | 8.85% |
| Tax rate | 11.8% - 12.5% | 12.15% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.6% - 8.9% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.75 | 0.89 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 10.2% |
| Tax rate | 11.8% | 12.5% |
| Debt/Equity ratio | 0.26 | 0.26 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.6% | 8.9% |
| Selected WACC | 7.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 263690.KQ | DRGem Corp | 0.26 | 0.74 | 0.6 |
| 035610.KQ | Solborn Inc | 0.03 | 0.68 | 0.66 |
| 041830.KQ | InBody Co Ltd | 0.03 | 0.96 | 0.94 |
| 041920.KQ | Mediana Co Ltd | 0 | 0.22 | 0.22 |
| 048870.KQ | Synergy Innovation Co Ltd | 0.17 | 0.14 | 0.12 |
| 122310.KQ | Genoray Co Ltd | 0.34 | 0.46 | 0.35 |
| 179290.KQ | MITech Co Ltd | 0 | 0.71 | 0.71 |
| 208370.KQ | Selvas Healthcare Inc | 0.02 | 0.89 | 0.87 |
| 219750.KQ | GTG Wellness Co Ltd | 0.14 | -0.04 | -0.04 |
| 228670.KQ | Ray Co Ltd | 0.67 | 1.32 | 0.83 |
| Low | High | |
| Unlevered beta | 0.5 | 0.68 |
| Relevered beta | 0.63 | 0.84 |
| Adjusted relevered beta | 0.75 | 0.89 |
263690.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 263690.KQ:
cost_of_equity (8.85%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.75) + 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.