264660.KQ WACC - Weighted Average Cost of Capital
The WACC of C&G Hi Tech Co Ltd (264660.KQ) is 7.4%.
| Range | Selected | |
| Cost of equity | 6.6% - 9.9% | 8.25% |
| Tax rate | 17.9% - 22.2% | 20.05% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.1% - 8.8% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.61 | 0.85 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.6% | 9.9% |
| Tax rate | 17.9% | 22.2% |
| Debt/Equity ratio | 0.2 | 0.2 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.1% | 8.8% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 264660.KQ | C&G Hi Tech Co Ltd | 0.2 | 1.46 | 1.26 |
| 009310.KS | Charm Engineering Co Ltd | 0.96 | 0.29 | 0.17 |
| 079950.KQ | Invenia Co Ltd | 2.12 | 1 | 0.37 |
| 090470.KQ | Jastech Ltd | 0.13 | 0.77 | 0.7 |
| 097800.KQ | Winpac Inc | 1.12 | 1.25 | 0.65 |
| 110990.KQ | Digital Imaging Technology Inc | 0 | 1.69 | 1.69 |
| 138690.KQ | LIS Co Ltd | 0.27 | 0 | 0 |
| 143540.KQ | Youngwoo DSP Co Ltd | 0.85 | 0.57 | 0.34 |
| 196490.KQ | DA Technology Co Ltd | 0.13 | -0.06 | -0.05 |
| 241790.KQ | OceanBridge Co Ltd | 0.16 | 1.4 | 1.24 |
| Low | High | |
| Unlevered beta | 0.36 | 0.67 |
| Relevered beta | 0.42 | 0.78 |
| Adjusted relevered beta | 0.61 | 0.85 |
264660.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 264660.KQ:
cost_of_equity (8.25%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.61) + 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.