1324.TW
Globe Industries Corp
Price:  
11.6 
TWD
Volume:  
277,009
Taiwan, Province of China | Commercial Services & Supplies

1324.TW WACC - Weighted Average Cost of Capital

The WACC of Globe Industries Corp (1324.TW) is 6.2%.

The Cost of Equity of Globe Industries Corp (1324.TW) is 6.25%.
The Cost of Debt of Globe Industries Corp (1324.TW) is 5.5%.

RangeSelected
Cost of equity5.2% - 7.3%6.25%
Tax rate22.1% - 22.3%22.2%
Cost of debt4.0% - 7.0%5.5%
WACC5.1% - 7.3%6.2%
WACC

1324.TW WACC calculation

CategoryLowHigh
Long-term bond rate2.0%2.5%
Equity market risk premium6.0%7.0%
Adjusted beta0.520.62
Additional risk adjustments0.0%0.5%
Cost of equity5.2%7.3%
Tax rate22.1%22.3%
Debt/Equity ratio
0.010.01
Cost of debt4.0%7.0%
After-tax WACC5.1%7.3%
Selected WACC6.2%

1324.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 1324.TW:

cost_of_equity (6.25%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.52) + 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.