1626.TW WACC - Weighted Average Cost of Capital
The WACC of Airmate Cayman International Co Ltd (1626.TW) is 6.5%.
| Range | Selected | |
| Cost of equity | 6.2% - 8.6% | 7.4% |
| Tax rate | 14.5% - 21.5% | 18% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.3% - 7.6% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.69 | 0.79 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 8.6% |
| Tax rate | 14.5% | 21.5% |
| Debt/Equity ratio | 0.44 | 0.44 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.3% | 7.6% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1626.TW | Airmate Cayman International Co Ltd | 0.44 | 0.61 | 0.44 |
| 002005.SZ | Elec-Tech International Co Ltd | 0.18 | 0.26 | 0.23 |
| 002150.SZ | Jiangsu Tongrun Equipment Technology Co Ltd | 0.39 | 0.73 | 0.55 |
| 002420.SZ | Guangzhou Echom Sci & Tech Co Ltd | 0.38 | 1.15 | 0.87 |
| 002616.SZ | Guangdong Chant Group Inc | 1.47 | 1.05 | 0.47 |
| 003023.SZ | Chengdu Rainbow Appliance Group Shares Co Ltd | 0.05 | 0.77 | 0.73 |
| 1715.HK | Miji International Holdings Ltd | 0.47 | -0.67 | -0.48 |
| 200512.SZ | Tsann Kuen China Enterprise Co Ltd | 0.72 | 0.51 | 0.32 |
| 300217.SZ | Zhenjiang Dongfang Electric Heating Technology Co Ltd | 0.09 | 1.87 | 1.73 |
| 8151.HK | Bao Shen Holdings Ltd | 1.8 | 0.06 | 0.02 |
| Low | High | |
| Unlevered beta | 0.39 | 0.5 |
| Relevered beta | 0.54 | 0.69 |
| Adjusted relevered beta | 0.69 | 0.79 |
1626.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 1626.TW:
cost_of_equity (7.40%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.69) + 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.