1312.TW
Grand Pacific Petrochemical Corp
Price:  
9.46 
TWD
Volume:  
1,136,222
Taiwan, Province of China | Chemicals

1312.TW WACC - Weighted Average Cost of Capital

The WACC of Grand Pacific Petrochemical Corp (1312.TW) is 6.0%.

The Cost of Equity of Grand Pacific Petrochemical Corp (1312.TW) is 9.1%.
The Cost of Debt of Grand Pacific Petrochemical Corp (1312.TW) is 5.5%.

RangeSelected
Cost of equity7.7% - 10.5%9.1%
Tax rate17.1% - 17.3%17.2%
Cost of debt4.0% - 7.0%5.5%
WACC4.7% - 7.3%6.0%
WACC

1312.TW WACC calculation

CategoryLowHigh
Long-term bond rate2.0%2.5%
Equity market risk premium6.0%7.0%
Adjusted beta0.941.07
Additional risk adjustments0.0%0.5%
Cost of equity7.7%10.5%
Tax rate17.1%17.3%
Debt/Equity ratio
2.22.2
Cost of debt4.0%7.0%
After-tax WACC4.7%7.3%
Selected WACC6.0%

1312.TW'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 1312.TW:

cost_of_equity (9.10%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.94) + 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.