264660.KQ
C&G Hi Tech Co Ltd
Price:  
12,500 
KRW
Volume:  
30,624
Korea, Republic of | Semiconductors & Semiconductor Equipment

264660.KQ WACC - Weighted Average Cost of Capital

The WACC of C&G Hi Tech Co Ltd (264660.KQ) is 7.4%.

The Cost of Equity of C&G Hi Tech Co Ltd (264660.KQ) is 8.25%.
The Cost of Debt of C&G Hi Tech Co Ltd (264660.KQ) is 4.25%.

RangeSelected
Cost of equity6.6% - 9.9%8.25%
Tax rate17.9% - 22.2%20.05%
Cost of debt4.0% - 4.5%4.25%
WACC6.1% - 8.8%7.4%
WACC

264660.KQ WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium5.8%6.8%
Adjusted beta0.610.85
Additional risk adjustments0.0%0.5%
Cost of equity6.6%9.9%
Tax rate17.9%22.2%
Debt/Equity ratio
0.20.2
Cost of debt4.0%4.5%
After-tax WACC6.1%8.8%
Selected WACC7.4%

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.