1323.TW WACC - Weighted Average Cost of Capital
The WACC of Yonyu Plastics Co Ltd (1323.TW) is 6.7%.
| Range | Selected | |
| Cost of equity | 5.5% - 7.2% | 6.35% |
| Tax rate | 18.9% - 20.8% | 19.85% |
| Cost of debt | 4.0% - 13.8% | 8.9% |
| WACC | 4.4% - 8.9% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.58 | 0.59 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 7.2% |
| Tax rate | 18.9% | 20.8% |
| Debt/Equity ratio | 0.89 | 0.89 |
| Cost of debt | 4.0% | 13.8% |
| After-tax WACC | 4.4% | 8.9% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1323.TW | Yonyu Plastics Co Ltd | 0.89 | 0.19 | 0.11 |
| 004450.KS | Samhwa Crown & Closure Co Ltd | 0.83 | 0.34 | 0.2 |
| 049830.KQ | Seung Il Corp | 0.12 | 0.58 | 0.53 |
| 4248.T | Takemoto Yohki Co Ltd | 0.22 | 0.22 | 0.19 |
| 5974.T | ChugokuKogyo Co Ltd | 0.81 | 0.44 | 0.26 |
| 9905.TW | Great China Metal Ind. Co Ltd | 0 | 0.12 | 0.12 |
| 9907.TW | Ton Yi Industrial Corp | 0.23 | 0.27 | 0.23 |
| 9939.TW | Taiwan Hon Chuan Enterprise Co Ltd | 0.42 | 0.35 | 0.26 |
| SMPC.BK | Sahamitr Pressure Container PCL | 0.06 | 0.24 | 0.23 |
| TPAC.BK | Thai Plaspac PCL | 1.31 | 0.6 | 0.29 |
| Low | High | |
| Unlevered beta | 0.22 | 0.24 |
| Relevered beta | 0.37 | 0.39 |
| Adjusted relevered beta | 0.58 | 0.59 |
1323.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 1323.TW:
cost_of_equity (6.35%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.58) + 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.