300120.KQ WACC - Weighted Average Cost of Capital
The WACC of LaonPeople Inc (300120.KQ) is 7.3%.
| Range | Selected | |
| Cost of equity | 6.7% - 9.4% | 8.05% |
| Tax rate | 5.4% - 10.9% | 8.15% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 6.0% - 8.7% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.62 | 0.79 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.7% | 9.4% |
| Tax rate | 5.4% | 10.9% |
| Debt/Equity ratio | 0.31 | 0.31 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 6.0% | 8.7% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300120.KQ | LaonPeople Inc | 0.42 | 1.2 | 0.86 |
| 004770.KS | Sunny Electronics Co Ltd | 0.01 | 0.56 | 0.56 |
| 032820.KQ | Woori Technology Inc | 0.31 | 1.13 | 0.87 |
| 057540.KQ | Omnisystem Co Ltd | 0.11 | 0.14 | 0.13 |
| 060310.KQ | 3S Korea Co Ltd | 0.04 | 0.53 | 0.51 |
| 137940.KQ | Next Eye Co Ltd | 0.21 | -0.24 | -0.2 |
| 143160.KQ | Intelligent Digital Integrated Security Co Ltd | 0.32 | 0.07 | 0.05 |
| 214870.KQ | NewGLab Co Ltd | 0.43 | -1.13 | -0.81 |
| 302430.KQ | Innometry Co Ltd | 0.01 | 0.83 | 0.82 |
| 347890.KQ | M2I Corporation | 0 | 0.47 | 0.47 |
| Low | High | |
| Unlevered beta | 0.33 | 0.53 |
| Relevered beta | 0.43 | 0.69 |
| Adjusted relevered beta | 0.62 | 0.79 |
300120.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 300120.KQ:
cost_of_equity (8.05%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.62) + 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.