1457.TW
Yi Jinn Industrial Co Ltd
Price:  
17.75 
TWD
Volume:  
57,927
Taiwan, Province of China | Textiles, Apparel & Luxury Goods

1457.TW WACC - Weighted Average Cost of Capital

The WACC of Yi Jinn Industrial Co Ltd (1457.TW) is 7.8%.

The Cost of Equity of Yi Jinn Industrial Co Ltd (1457.TW) is 8.6%.
The Cost of Debt of Yi Jinn Industrial Co Ltd (1457.TW) is 8.9%.

RangeSelected
Cost of equity6.9% - 10.3%8.6%
Tax rate12.7% - 18.4%15.55%
Cost of debt4.0% - 13.8%8.9%
WACC4.6% - 10.9%7.8%
WACC

1457.TW WACC calculation

CategoryLowHigh
Long-term bond rate2.0%2.5%
Equity market risk premium6.0%7.0%
Adjusted beta0.811.03
Additional risk adjustments0.0%0.5%
Cost of equity6.9%10.3%
Tax rate12.7%18.4%
Debt/Equity ratio
1.981.98
Cost of debt4.0%13.8%
After-tax WACC4.6%10.9%
Selected WACC7.8%

1457.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 1457.TW:

cost_of_equity (8.60%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.81) + 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.