1468.TW WACC - Weighted Average Cost of Capital
The WACC of Chang Ho Fibre Corp (1468.TW) is 6.2%.
| Range | Selected | |
| Cost of equity | 6.0% - 8.5% | 7.25% |
| Tax rate | 10.5% - 18.5% | 14.5% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.3% - 7.1% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.66 | 0.78 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 8.5% |
| Tax rate | 10.5% | 18.5% |
| Debt/Equity ratio | 0.42 | 0.42 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.3% | 7.1% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1468.TW | Chang Ho Fibre Corp | 0.42 | 0.54 | 0.4 |
| 1410.TW | Nan Yang Dyeing & Finishing Co Ltd | 0 | 0.32 | 0.32 |
| 1414.TW | Tung Ho Textile Co Ltd | 0.11 | 0.71 | 0.66 |
| 1441.TW | Tah Tong Textile Co Ltd | 0.99 | 1.03 | 0.57 |
| 1443.TW | Lily Textile Co Ltd | 1.05 | 0.3 | 0.16 |
| 1445.TW | Universal Textile Co Ltd | 0.06 | 0.5 | 0.47 |
| 1452.TW | Hong Yi Fiber Industry Co Ltd | 0 | 0.53 | 0.53 |
| 1463.TW | Chyang Sheng Dyeing & Finishing Co Ltd | 0 | 0.67 | 0.67 |
| 1465.TW | Wisher Industrial Co Ltd | 0.02 | 0.08 | 0.08 |
| 1470.TW | Evertex Fabrinology Ltd | 0.02 | 0.17 | 0.17 |
| Low | High | |
| Unlevered beta | 0.37 | 0.5 |
| Relevered beta | 0.49 | 0.67 |
| Adjusted relevered beta | 0.66 | 0.78 |
1468.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 1468.TW:
cost_of_equity (7.25%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.66) + 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.