1436.TW WACC - Weighted Average Cost of Capital
The WACC of Hua Yu Lien Development Co Ltd (1436.TW) is 6.0%.
| Range | Selected | |
| Cost of equity | 6.4% - 8.6% | 7.5% |
| Tax rate | 7.2% - 11.9% | 9.55% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.3% - 6.7% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.73 | 0.8 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 8.6% |
| Tax rate | 7.2% | 11.9% |
| Debt/Equity ratio | 0.7 | 0.7 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.3% | 6.7% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1436.TW | Hua Yu Lien Development Co Ltd | 0.7 | 0.52 | 0.32 |
| 1416.TW | Kwong Fong Industries Corp | 0.42 | 0.63 | 0.46 |
| 1435.TW | Chung Fu Tex-International Corp | 0 | 1.2 | 1.2 |
| 1437.TW | GTM Holdings Corp | 0.66 | 0.51 | 0.32 |
| 2530.TW | Delpha Construction Co Ltd | 0.5 | 0.57 | 0.39 |
| 3266.TW | Sunty Development Co Ltd | 0.63 | 0.37 | 0.23 |
| 5525.TW | Sweeten Real Estate Development Co Ltd | 0.81 | 0.7 | 0.4 |
| 9946.TW | San Far Property Ltd | 1.22 | 0.66 | 0.31 |
| LHG.VN | Long Hau Corp | 0.12 | 1.1 | 0.99 |
| SGR.VN | Saigon Real Estate JSC | 0.18 | 1.73 | 1.48 |
| Low | High | |
| Unlevered beta | 0.36 | 0.43 |
| Relevered beta | 0.6 | 0.7 |
| Adjusted relevered beta | 0.73 | 0.8 |
1436.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 1436.TW:
cost_of_equity (7.50%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.73) + 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.