1783.TW WACC - Weighted Average Cost of Capital
The WACC of Maxigen Biotech Inc (1783.TW) is 6.3%.
| Range | Selected | |
| Cost of equity | 6.8% - 9.8% | 8.3% |
| Tax rate | 15.1% - 15.8% | 15.45% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.5% - 7.0% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.79 | 0.97 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 9.8% |
| Tax rate | 15.1% | 15.8% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.5% | 7.0% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1783.TW | Maxigen Biotech Inc | 1.1 | 0.53 | 0.27 |
| 1707.TW | Grape King Bio Ltd | 0.01 | 0.27 | 0.27 |
| 238200.KQ | Bifido Co Ltd | 0.29 | 0.72 | 0.58 |
| 277410.KQ | Insan Inc | 0.36 | 0.56 | 0.43 |
| 318010.KQ | Pharmsville Co Ltd | 0 | 0.29 | 0.29 |
| 4137.TW | Chlitina Holding Ltd | 0.21 | 0.56 | 0.48 |
| 943.HK | Zhongzheng International Co Ltd | 10.49 | 0.76 | 0.08 |
| APCO.BK | Asian Phytoceuticals PCL | 0.01 | 0.64 | 0.64 |
| BIOHLDG.KL | Bioalpha Holdings Bhd | 0.14 | 1.34 | 1.2 |
| CUPID.NS | Cupid Ltd | 0 | 1.05 | 1.05 |
| ENGKAH.KL | Eng Kah Corporation Bhd | 0 | 0.15 | 0.15 |
| Low | High | |
| Unlevered beta | 0.29 | 0.48 |
| Relevered beta | 0.69 | 0.96 |
| Adjusted relevered beta | 0.79 | 0.97 |
1783.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 1783.TW:
cost_of_equity (8.30%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.79) + 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.