1444.TW WACC - Weighted Average Cost of Capital
The WACC of Lealea Enterprise Co Ltd (1444.TW) is 6.0%.
| Range | Selected | |
| Cost of equity | 5.5% - 8.0% | 6.75% |
| Tax rate | 7.3% - 9.4% | 8.35% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.7% - 7.3% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.57 | 0.72 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 8.0% |
| Tax rate | 7.3% | 9.4% |
| Debt/Equity ratio | 0.86 | 0.86 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.7% | 7.3% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1444.TW | Lealea Enterprise Co Ltd | 0.86 | 0.19 | 0.11 |
| 1447.TW | Li Peng Enterprise Co Ltd | 1.01 | 0.26 | 0.13 |
| 1451.TW | Nien Hsing Textile Co Ltd | 0.06 | 0.51 | 0.48 |
| 1455.TW | Zig Sheng Industrial Co Ltd | 0.74 | 0.36 | 0.21 |
| 1460.TW | Everest Textile Co Ltd | 1.08 | 0.35 | 0.18 |
| 1464.TW | De Licacy Industrial Co Ltd | 1.38 | 1.06 | 0.47 |
| 1467.TW | Tex-Ray Industrial Co Ltd | 2.41 | 0.6 | 0.19 |
| 4439.TW | TST Group Holding Ltd | 0.34 | 0.4 | 0.3 |
| 6504.TW | Nan Liu Enterprise Co Ltd | 1.24 | 0.74 | 0.35 |
| 9938.TW | Taiwan Paiho Ltd | 0.71 | 0.81 | 0.49 |
| Low | High | |
| Unlevered beta | 0.2 | 0.32 |
| Relevered beta | 0.36 | 0.58 |
| Adjusted relevered beta | 0.57 | 0.72 |
1444.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 1444.TW:
cost_of_equity (6.75%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.57) + 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.