1582.TW WACC - Weighted Average Cost of Capital
The WACC of Syncmold Enterprise Corp (1582.TW) is 7.6%.
| Range | Selected | |
| Cost of equity | 7.2% - 9.9% | 8.55% |
| Tax rate | 36.6% - 37.1% | 36.85% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.4% - 8.8% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.86 | 0.99 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.2% | 9.9% |
| Tax rate | 36.6% | 37.1% |
| Debt/Equity ratio | 0.19 | 0.19 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.4% | 8.8% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1582.TW | Syncmold Enterprise Corp | 0.19 | 0.84 | 0.75 |
| 2472.TW | Lelon Electronics Corp | 0.19 | 1.19 | 1.07 |
| 2478.TW | TA-I Technology Co Ltd | 0.18 | 0.72 | 0.65 |
| 3605.TW | Aces Electronics Co Ltd | 0.42 | 1.42 | 1.13 |
| 3694.TW | AzureWave Technologies Inc | 0.02 | 1.36 | 1.34 |
| 4927.TW | Apex International Co Ltd | 1.83 | 1.28 | 0.59 |
| 6108.TW | APCB Inc | 0.9 | 0.94 | 0.6 |
| 6230.TW | Nidec Chaun Choung Technology Corp | 0.03 | 1.36 | 1.34 |
| 6251.TW | Dynamic Electronics Co Ltd | 0.91 | 1.04 | 0.66 |
| 8039.TW | Taiflex Scientific Co Ltd | 0.09 | 0.78 | 0.74 |
| Low | High | |
| Unlevered beta | 0.71 | 0.88 |
| Relevered beta | 0.79 | 0.99 |
| Adjusted relevered beta | 0.86 | 0.99 |
1582.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 1582.TW:
cost_of_equity (8.55%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.86) + 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.