1733.TW
Apex Biotechnology Corp
Price:  
28.90 
TWD
Volume:  
72,251.00
Taiwan, Province of China | Health Care Equipment & Supplies
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1733.TW WACC - Weighted Average Cost of Capital

The WACC of Apex Biotechnology Corp (1733.TW) is 5.9%.

The Cost of Equity of Apex Biotechnology Corp (1733.TW) is 6.05%.
The Cost of Debt of Apex Biotechnology Corp (1733.TW) is 4.25%.

Range Selected
Cost of equity 5.00% - 7.10% 6.05%
Tax rate 12.40% - 15.20% 13.80%
Cost of debt 4.00% - 4.50% 4.25%
WACC 4.9% - 6.9% 5.9%
WACC

1733.TW WACC calculation

Category Low High
Long-term bond rate 2.0% 2.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.49 0.58
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.00% 7.10%
Tax rate 12.40% 15.20%
Debt/Equity ratio 0.04 0.04
Cost of debt 4.00% 4.50%
After-tax WACC 4.9% 6.9%
Selected WACC 5.9%

1733.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 1733.TW:

cost_of_equity (6.05%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.49) + 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.