1474.TW WACC - Weighted Average Cost of Capital
The WACC of Honmyue Enterprise Co Ltd (1474.TW) is 6.1%.
| Range | Selected | |
| Cost of equity | 6.1% - 8.8% | 7.45% |
| Tax rate | 9.2% - 15.4% | 12.3% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.2% - 6.9% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.69 | 0.83 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 8.8% |
| Tax rate | 9.2% | 15.4% |
| Debt/Equity ratio | 0.61 | 0.61 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.2% | 6.9% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1474.TW | Honmyue Enterprise Co Ltd | 0.61 | 0.74 | 0.48 |
| 1413.TW | Hung Chou Fiber Ind Co Ltd | 0.54 | 0.28 | 0.19 |
| 1441.TW | Tah Tong Textile Co Ltd | 1.07 | 1.07 | 0.55 |
| 1449.TW | Chia Her Industrial Co Ltd | 2.6 | 1.23 | 0.37 |
| 1454.TW | Taiwan Taffeta Fabric Co Ltd | 0.08 | 0.23 | 0.21 |
| 1457.TW | Yi Jinn Industrial Co Ltd | 2.03 | 0.59 | 0.21 |
| 1459.TW | Lan Fa Textile Co Ltd | 0.35 | 0.66 | 0.51 |
| 1466.TW | Acelon Chemicals & Fiber Corp | 0.91 | 0.87 | 0.48 |
| 4426.TW | Li Cheng Enterprise Co Ltd | 1.08 | 1.2 | 0.61 |
| 9944.TW | Shinih Enterprise Co Ltd | 1.13 | 0.61 | 0.3 |
| Low | High | |
| Unlevered beta | 0.35 | 0.48 |
| Relevered beta | 0.54 | 0.75 |
| Adjusted relevered beta | 0.69 | 0.83 |
1474.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 1474.TW:
cost_of_equity (7.45%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.69) + 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.