1324.TW WACC - Weighted Average Cost of Capital
The WACC of Globe Industries Corp (1324.TW) is 6.2%.
| Range | Selected | |
| Cost of equity | 5.2% - 7.3% | 6.25% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.1% - 7.3% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.52 | 0.62 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 7.3% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.1% | 7.3% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1324.TW | Globe Industries Corp | 0.01 | 0.31 | 0.31 |
| 3583.T | AuBEX Corp | 0.37 | 0.75 | 0.58 |
| 539400.BO | Mallcom (India) Ltd | 0.13 | 1.42 | 1.29 |
| 6128.TW | General Plastic Industrial Co Ltd | 0.7 | 0.38 | 0.25 |
| 7869.T | Nihon Form Service Co Ltd | 0.73 | 0.5 | 0.32 |
| 7939.T | Kensoh Co Ltd | 0.65 | 0.18 | 0.12 |
| 7992.T | Sailor Pen Co Ltd | 0.53 | -0.24 | -0.17 |
| 9929.TW | Choice Development Inc | 0.62 | 0.09 | 0.06 |
| LINCPEN.NS | Linc Pen & Plastics Ltd | 0.02 | 0.74 | 0.73 |
| LION.JK | Lion Metal Works Tbk PT | 0.25 | 0.84 | 0.7 |
| Low | High | |
| Unlevered beta | 0.29 | 0.42 |
| Relevered beta | 0.28 | 0.43 |
| Adjusted relevered beta | 0.52 | 0.62 |
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.