1416.TW WACC - Weighted Average Cost of Capital
The WACC of Kwong Fong Industries Corp (1416.TW) is 7.7%.
| Range | Selected | |
| Cost of equity | 5.3% - 7.7% | 6.5% |
| Tax rate | 13.6% - 19.4% | 16.5% |
| Cost of debt | 4.0% - 22.0% | 13% |
| WACC | 4.8% - 10.7% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.55 | 0.67 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 7.7% |
| Tax rate | 13.6% | 19.4% |
| Debt/Equity ratio | 0.42 | 0.42 |
| Cost of debt | 4.0% | 22.0% |
| After-tax WACC | 4.8% | 10.7% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1416.TW | Kwong Fong Industries Corp | 0.42 | 0.67 | 0.5 |
| 2527.TW | Hung Ching Development & Construction Co Ltd | 1.52 | 0.93 | 0.41 |
| 2528.TW | Crowell Development Corp | 0.97 | 0.67 | 0.37 |
| 2537.TW | We & Win Development Co Ltd | 2.88 | 1.13 | 0.33 |
| 2545.TW | Huang Hsiang Construction Corp | 2.21 | 1.17 | 0.41 |
| 2547.TW | Radium Life Tech Co Ltd | 2.96 | 0.33 | 0.1 |
| 526727.BO | Garnet Construction Ltd | 0.28 | -0.68 | -0.55 |
| 5525.TW | Sweeten Real Estate Development Co Ltd | 0.8 | 0.66 | 0.39 |
| CLG.VN | Cotec Investment and Land House Development JSC | 2.46 | -0.04 | -0.01 |
| DART.JK | Duta Anggada Realty Tbk PT | 7.66 | 0.74 | 0.1 |
| Low | High | |
| Unlevered beta | 0.24 | 0.38 |
| Relevered beta | 0.33 | 0.51 |
| Adjusted relevered beta | 0.55 | 0.67 |
1416.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 1416.TW:
cost_of_equity (6.50%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.55) + 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.