1614.TW WACC - Weighted Average Cost of Capital
The WACC of Taiwan Sanyo Electric Co Ltd (1614.TW) is 6.9%.
| Range | Selected | |
| Cost of equity | 5.7% - 8.2% | 6.95% |
| Tax rate | 18.3% - 19.2% | 18.75% |
| Cost of debt | 4.0% - 7.5% | 5.75% |
| WACC | 5.7% - 8.2% | 6.9% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.61 | 0.74 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 8.2% |
| Tax rate | 18.3% | 19.2% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 7.5% |
| After-tax WACC | 5.7% | 8.2% |
| Selected WACC | 6.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1614.TW | Taiwan Sanyo Electric Co Ltd | 0 | 0.3 | 0.3 |
| 003023.SZ | Chengdu Rainbow Appliance Group Shares Co Ltd | 0.05 | 0.75 | 0.72 |
| 037070.KQ | Paseco Co Ltd | 0.09 | 0.69 | 0.65 |
| 1541.TW | Chang Type Industrial Co Ltd | 0.17 | 0.67 | 0.58 |
| 1558.TW | Zeng Hsing Industrial Co Ltd | 0.26 | 0.54 | 0.44 |
| 300272.SZ | Canature Health Technology Group Co Ltd | 0.25 | 1.64 | 1.37 |
| 3059.TW | Altek Corp | 0.26 | 1.27 | 1.04 |
| 4564.TW | Mosa Industrial Corp | 0.79 | 0.62 | 0.37 |
| 4930.TW | Star Comgistic Capital Co Ltd | 1.06 | 0.48 | 0.26 |
| 9911.TW | Taiwan Sakura Corp | 0.04 | 0.15 | 0.15 |
| Low | High | |
| Unlevered beta | 0.42 | 0.61 |
| Relevered beta | 0.42 | 0.61 |
| Adjusted relevered beta | 0.61 | 0.74 |
1614.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 1614.TW:
cost_of_equity (6.95%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.61) + 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.