1609.TW WACC - Weighted Average Cost of Capital

The WACC of Ta Ya Electric Wire & Cable Co Ltd (1609.TW) is 6.8%.

The Cost of Equity of Ta Ya Electric Wire & Cable Co Ltd (1609.TW) is 10.50%.

The Cost of Debt of Ta Ya Electric Wire & Cable Co Ltd (1609.TW) is 4.25%.

	Range	Selected
Cost of equity	8.90% - 12.10%	10.50%
Tax rate	14.10% - 16.00%	15.05%
Cost of debt	4.00% - 4.50%	4.25%
WACC	5.9% - 7.6%	6.8%

WACC

1609.TW WACC calculation

Category	Low	High

Long-term bond rate	2.0%	2.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.15	1.29

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.90%	12.10%

Tax rate	14.10%	16.00%
Debt/Equity ratio	1.19	1.19
Cost of debt	4.00%	4.50%

After-tax WACC	5.9%	7.6%


Selected WACC	6.8%

1609.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 1609.TW:

cost_of_equity (10.50%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.15) + 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.