1611.TW
China Electric Mfg Corp
Price:  
12.65 
TWD
Volume:  
305,721
Taiwan, Province of China | Electrical Equipment

1611.TW WACC - Weighted Average Cost of Capital

The WACC of China Electric Mfg Corp (1611.TW) is 7.7%.

The Cost of Equity of China Electric Mfg Corp (1611.TW) is 8.35%.
The Cost of Debt of China Electric Mfg Corp (1611.TW) is 4.25%.

RangeSelected
Cost of equity7.0% - 9.7%8.35%
Tax rate4.6% - 6.7%5.65%
Cost of debt4.0% - 4.5%4.25%
WACC6.5% - 8.9%7.7%
WACC

1611.TW WACC calculation

CategoryLowHigh
Long-term bond rate2.0%2.5%
Equity market risk premium6.0%7.0%
Adjusted beta0.830.95
Additional risk adjustments0.0%0.5%
Cost of equity7.0%9.7%
Tax rate4.6%6.7%
Debt/Equity ratio
0.160.16
Cost of debt4.0%4.5%
After-tax WACC6.5%8.9%
Selected WACC7.7%

1611.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 1611.TW:

cost_of_equity (8.35%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.83) + 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.