1455.TW WACC - Weighted Average Cost of Capital
The WACC of Zig Sheng Industrial Co Ltd (1455.TW) is 5.5%.
| Range | Selected | |
| Cost of equity | 5.2% - 7.1% | 6.15% |
| Tax rate | 12.5% - 17.4% | 14.95% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.5% - 6.6% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.53 | 0.58 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 7.1% |
| Tax rate | 12.5% | 17.4% |
| Debt/Equity ratio | 0.69 | 0.69 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.5% | 6.6% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1455.TW | Zig Sheng Industrial Co Ltd | 0.69 | 0.45 | 0.29 |
| 1342.TW | Cathay Consolidated Inc | 0.1 | 0.26 | 0.24 |
| 1413.TW | Hung Chou Fiber Ind Co Ltd | 0.54 | 0.27 | 0.19 |
| 1444.TW | Lealea Enterprise Co Ltd | 0.73 | 0.28 | 0.17 |
| 1447.TW | Li Peng Enterprise Co Ltd | 0.92 | 0.42 | 0.24 |
| 1457.TW | Yi Jinn Industrial Co Ltd | 2.01 | 0.49 | 0.18 |
| 1460.TW | Everest Textile Co Ltd | 1.03 | 0.33 | 0.18 |
| 1464.TW | De Licacy Industrial Co Ltd | 1.28 | 1.03 | 0.49 |
| 1467.TW | Tex-Ray Industrial Co Ltd | 2.17 | 0.56 | 0.2 |
| 6504.TW | Nan Liu Enterprise Co Ltd | 1.35 | 0.73 | 0.34 |
| Low | High | |
| Unlevered beta | 0.19 | 0.24 |
| Relevered beta | 0.3 | 0.37 |
| Adjusted relevered beta | 0.53 | 0.58 |
1455.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 1455.TW:
cost_of_equity (6.15%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.53) + 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.