1514.TW WACC - Weighted Average Cost of Capital
The WACC of Allis Electric Co Ltd (1514.TW) is 7.8%.
| Range | Selected | |
| Cost of equity | 7.0% - 9.2% | 8.1% |
| Tax rate | 16.3% - 17.9% | 17.1% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.8% - 8.8% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.84 | 0.88 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.0% | 9.2% |
| Tax rate | 16.3% | 17.9% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.8% | 8.8% |
| Selected WACC | 7.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1514.TW | Allis Electric Co Ltd | 0.08 | 1.24 | 1.16 |
| 1612.TW | Hong Tai Electric Industrial Co Ltd | 0 | 0.75 | 0.75 |
| 1615.TW | Dah San Electric Wire & Cable Corp | 0.12 | 0.41 | 0.37 |
| 2460.TW | Gem Terminal Industry Co Ltd | 0.76 | 1.33 | 0.82 |
| 2462.TW | Taiwan Line Tek Electronic Co Ltd | 0.39 | 1.06 | 0.8 |
| 3003.TW | KS Terminals Inc | 0.11 | 0.8 | 0.73 |
| 3058.TW | Leader Electronics Inc | 0.68 | 0.8 | 0.51 |
| 3501.TW | Well Shin Technology Co Ltd | 0.03 | 0.7 | 0.68 |
| 3550.TW | Copartner Technology Corp | 1.75 | 0.93 | 0.38 |
| 8103.TW | CviLux Corp | 0.07 | 1.25 | 1.18 |
| Low | High | |
| Unlevered beta | 0.71 | 0.77 |
| Relevered beta | 0.76 | 0.82 |
| Adjusted relevered beta | 0.84 | 0.88 |
1514.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 1514.TW:
cost_of_equity (8.10%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.84) + 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.