089530.KQ WACC - Weighted Average Cost of Capital

The WACC of AT Semicon Co Ltd (089530.KQ) is 6.3%.

The Cost of Equity of AT Semicon Co Ltd (089530.KQ) is 6.50%.

The Cost of Debt of AT Semicon Co Ltd (089530.KQ) is 5.70%.

	Range	Selected
Cost of equity	5.30% - 7.70%	6.50%
Tax rate	-% - 0.10%	0.05%
Cost of debt	4.40% - 7.00%	5.70%
WACC	5.1% - 7.5%	6.3%

WACC

089530.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	0.53

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.30%	7.70%

Tax rate	-%	0.10%
Debt/Equity ratio	0.27	0.27
Cost of debt	4.40%	7.00%

After-tax WACC	5.1%	7.5%


Selected WACC	6.3%

089530.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 089530.KQ:

cost_of_equity (6.50%) = 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.