1464.TW WACC - Weighted Average Cost of Capital
The WACC of De Licacy Industrial Co Ltd (1464.TW) is 4.8%.
| Range | Selected | |
| Cost of equity | 5.7% - 7.8% | 6.75% |
| Tax rate | 22.0% - 26.6% | 24.3% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.3% - 5.3% | 4.8% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.62 | 0.69 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 7.8% |
| Tax rate | 22.0% | 26.6% |
| Debt/Equity ratio | 1.31 | 1.31 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.3% | 5.3% |
| Selected WACC | 4.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1464.TW | De Licacy Industrial Co Ltd | 1.31 | 0.98 | 0.49 |
| 1444.TW | Lealea Enterprise Co Ltd | 0.79 | 0.19 | 0.12 |
| 1447.TW | Li Peng Enterprise Co Ltd | 0.96 | 0.33 | 0.19 |
| 1451.TW | Nien Hsing Textile Co Ltd | 0.06 | 0.49 | 0.47 |
| 1455.TW | Zig Sheng Industrial Co Ltd | 0.71 | 0.39 | 0.26 |
| 1457.TW | Yi Jinn Industrial Co Ltd | 1.98 | 0.55 | 0.22 |
| 1460.TW | Everest Textile Co Ltd | 0.96 | 0.33 | 0.19 |
| 1467.TW | Tex-Ray Industrial Co Ltd | 2.28 | 0.58 | 0.21 |
| 4439.TW | TST Group Holding Ltd | 0.37 | 0.36 | 0.28 |
| 6504.TW | Nan Liu Enterprise Co Ltd | 1.25 | 0.72 | 0.37 |
| Low | High | |
| Unlevered beta | 0.22 | 0.27 |
| Relevered beta | 0.43 | 0.54 |
| Adjusted relevered beta | 0.62 | 0.69 |
1464.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 1464.TW:
cost_of_equity (6.75%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.62) + 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.