1527.TW
Basso Industry Corp
Price:  
36.20 
TWD
Volume:  
213,670.00
Taiwan, Province of China | Household Durables
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1527.TW WACC - Weighted Average Cost of Capital

The WACC of Basso Industry Corp (1527.TW) is 5.7%.

The Cost of Equity of Basso Industry Corp (1527.TW) is 7.35%.
The Cost of Debt of Basso Industry Corp (1527.TW) is 5.00%.

Range Selected
Cost of equity 6.00% - 8.70% 7.35%
Tax rate 20.30% - 21.00% 20.65%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.0% - 6.3% 5.7%
WACC

1527.TW WACC calculation

Category Low High
Long-term bond rate 2.0% 2.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.67 0.8
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.00% 8.70%
Tax rate 20.30% 21.00%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 5.0% 6.3%
Selected WACC 5.7%

1527.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 1527.TW:

cost_of_equity (7.35%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.67) + 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.