1583.TW WACC - Weighted Average Cost of Capital

The WACC of Goodway Machine Corp (1583.TW) is 8.4%.

The Cost of Equity of Goodway Machine Corp (1583.TW) is 7.70%.

The Cost of Debt of Goodway Machine Corp (1583.TW) is 11.50%.

	Range	Selected
Cost of equity	6.20% - 9.20%	7.70%
Tax rate	13.50% - 19.30%	16.40%
Cost of debt	4.00% - 19.00%	11.50%
WACC	5.1% - 11.8%	8.4%

WACC

1583.TW WACC calculation

Category	Low	High

Long-term bond rate	2.0%	2.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.7	0.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	9.20%

Tax rate	13.50%	19.30%
Debt/Equity ratio	0.74	0.74
Cost of debt	4.00%	19.00%

After-tax WACC	5.1%	11.8%


Selected WACC	8.4%

1583.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 1583.TW:

cost_of_equity (7.70%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.7) + 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.