The WACC of Yi Jinn Industrial Co Ltd (1457.TW) is 7.8%.
Range | Selected | |
Cost of equity | 6.9% - 10.3% | 8.6% |
Tax rate | 12.7% - 18.4% | 15.55% |
Cost of debt | 4.0% - 13.8% | 8.9% |
WACC | 4.6% - 10.9% | 7.8% |
Category | Low | High |
Long-term bond rate | 2.0% | 2.5% |
Equity market risk premium | 6.0% | 7.0% |
Adjusted beta | 0.81 | 1.03 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.9% | 10.3% |
Tax rate | 12.7% | 18.4% |
Debt/Equity ratio | 1.98 | 1.98 |
Cost of debt | 4.0% | 13.8% |
After-tax WACC | 4.6% | 10.9% |
Selected WACC | 7.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
1457.TW | Yi Jinn Industrial Co Ltd | 1.98 | 0.55 | 0.21 |
1342.TW | Cathay Consolidated Inc | 0.1 | 0.26 | 0.24 |
1413.TW | Hung Chou Fiber Ind Co Ltd | 0.54 | 0.29 | 0.2 |
1449.TW | Chia Her Industrial Co Ltd | 2.35 | 1.13 | 0.38 |
1454.TW | Taiwan Taffeta Fabric Co Ltd | 0.08 | 0.19 | 0.18 |
1459.TW | Lan Fa Textile Co Ltd | 0.36 | 0.54 | 0.42 |
1466.TW | Acelon Chemicals & Fiber Corp | 0.75 | 0.83 | 0.51 |
1474.TW | Honmyue Enterprise Co Ltd | 0.6 | 0.65 | 0.43 |
4426.TW | Li Cheng Enterprise Co Ltd | 1.04 | 1.14 | 0.61 |
9944.TW | Shinih Enterprise Co Ltd | 1.12 | 0.56 | 0.29 |
Low | High | |
Unlevered beta | 0.27 | 0.39 |
Relevered beta | 0.72 | 1.04 |
Adjusted relevered beta | 0.81 | 1.03 |
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.