1529.TW WACC - Weighted Average Cost of Capital
The WACC of Klingon Aerospace Inc (1529.TW) is 7.6%.
| Range | Selected | |
| Cost of equity | 7.4% - 9.8% | 8.6% |
| Tax rate | 5.0% - 10.6% | 7.8% |
| Cost of debt | 4.0% - 5.2% | 4.6% |
| WACC | 6.6% - 8.6% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.9 | 0.97 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.4% | 9.8% |
| Tax rate | 5.0% | 10.6% |
| Debt/Equity ratio | 0.31 | 0.31 |
| Cost of debt | 4.0% | 5.2% |
| After-tax WACC | 6.6% | 8.6% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1529.TW | Klingon Aerospace Inc | 0.31 | 0.89 | 0.69 |
| 2483.TW | Excel Cell Electronic Co Ltd | 0.51 | 0.73 | 0.49 |
| 3002.TW | Ahoku Electronic Co | 0.02 | 0.73 | 0.72 |
| 3043.TW | Powercom Co Ltd | 0.35 | 1 | 0.76 |
| 3296.TW | Powertech Industrial Co Ltd | 0.22 | 0.75 | 0.62 |
| 3308.TW | Bestec Power Electronics Co Ltd | 0.93 | 0.68 | 0.36 |
| 3536.TW | Sintronic Technology Inc | 2.1 | 0.89 | 0.3 |
| 4545.TW | Min Aik Precision Industrial Co Ltd | 0.18 | 1.9 | 1.62 |
| 6133.TW | Golden Bridge Electech Inc | 0.31 | 1.3 | 1.01 |
| 6558.TW | SYNergy ScienTech Corp | 0.01 | 1.18 | 1.17 |
| Low | High | |
| Unlevered beta | 0.66 | 0.73 |
| Relevered beta | 0.85 | 0.96 |
| Adjusted relevered beta | 0.9 | 0.97 |
1529.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 1529.TW:
cost_of_equity (8.60%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.9) + 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.