1417.TW WACC - Weighted Average Cost of Capital
The WACC of Carnival Industrial Corp (1417.TW) is 6.0%.
| Range | Selected | |
| Cost of equity | 5.0% - 7.3% | 6.15% |
| Tax rate | 2.2% - 4.3% | 3.25% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.8% - 7.2% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.42 | 0.54 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 5.0% | 7.3% |
| Tax rate | 2.2% | 4.3% |
| Debt/Equity ratio | 0.21 | 0.21 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.8% | 7.2% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1417.TW | Carnival Industrial Corp | 0.21 | 0.47 | 0.39 |
| 2736.T | Festaria Holdings Co Ltd | 1.53 | 0.22 | 0.09 |
| 3550.T | Studio Atao Co Ltd | 0.07 | 0.51 | 0.48 |
| 375.HK | YGM Trading Ltd | 0.44 | 0.06 | 0.04 |
| 4807.TW | Regal Holding Co Ltd | 0.89 | 1.13 | 0.61 |
| 483.HK | Bauhaus International (Holdings) Ltd | 0.88 | 0.22 | 0.12 |
| 5906.TW | Tainan Enterprise (Cayman) Co Ltd | 0.51 | 0.41 | 0.28 |
| 8041.HK | Luxey International (Holdings) Ltd | 0 | -0.28 | -0.28 |
| 8215.T | Ginza Yamagataya Co Ltd | 0 | 0.24 | 0.24 |
| BCZ.SI | Travelite Holdings Ltd | 1.87 | -0.18 | -0.06 |
| Low | High | |
| Unlevered beta | 0.11 | 0.26 |
| Relevered beta | 0.13 | 0.31 |
| Adjusted relevered beta | 0.42 | 0.54 |
1417.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 1417.TW:
cost_of_equity (6.15%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.42) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.