1532.TW WACC - Weighted Average Cost of Capital
The WACC of China Metal Products Co Ltd (1532.TW) is 5.6%.
| Range | Selected | |
| Cost of equity | 7.4% - 10.2% | 8.8% |
| Tax rate | 12.8% - 17.3% | 15.05% |
| Cost of debt | 4.0% - 5.7% | 4.85% |
| WACC | 4.8% - 6.5% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.9 | 1.03 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.4% | 10.2% |
| Tax rate | 12.8% | 17.3% |
| Debt/Equity ratio | 2.06 | 2.06 |
| Cost of debt | 4.0% | 5.7% |
| After-tax WACC | 4.8% | 6.5% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1532.TW | China Metal Products Co Ltd | 2.06 | 0.7 | 0.26 |
| 2007.TW | Yieh Hsing Enterprise Co Ltd | 1.78 | 0.84 | 0.34 |
| 2010.TW | Chun Yuan Steel Industry Co Ltd | 0.43 | 0.58 | 0.43 |
| 2028.TW | Wei Chih Steel Industrial Co Ltd | 0.63 | 0.75 | 0.49 |
| 2029.TW | Sheng Yu Steel Co Ltd | 0.02 | 0.51 | 0.5 |
| 2030.TW | Froch Enterprise Co Ltd | 1.53 | 0.62 | 0.27 |
| 2031.TW | Hsin Kuang Steel Co Ltd | 1.21 | 0.5 | 0.25 |
| 2034.TW | YC Inox Co Ltd | 0.85 | 0.69 | 0.4 |
| 2038.TW | Hai Kwang Enterprise Corp | 1.62 | 0.87 | 0.37 |
| 2069.TW | Yuen Chang Stainless Steel Co Ltd | 1.89 | 0.63 | 0.25 |
| Low | High | |
| Unlevered beta | 0.31 | 0.38 |
| Relevered beta | 0.85 | 1.04 |
| Adjusted relevered beta | 0.9 | 1.03 |
1532.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 1532.TW:
cost_of_equity (8.80%) = 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.