1783.TW WACC - Weighted Average Cost of Capital
The WACC of Maxigen Biotech Inc (1783.TW) is 6.5%.
| Range | Selected | |
| Cost of equity | 7.6% - 10.2% | 8.9% |
| Tax rate | 15.1% - 15.8% | 15.45% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.9% - 7.2% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.92 | 1.02 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.6% | 10.2% |
| Tax rate | 15.1% | 15.8% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.9% | 7.2% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1783.TW | Maxigen Biotech Inc | 0.87 | 0.51 | 0.3 |
| 1707.TW | Grape King Bio Ltd | 0.01 | 0.23 | 0.23 |
| 238200.KQ | Bifido Co Ltd | 0.29 | 0.65 | 0.52 |
| 277410.KQ | Insan Inc | 0.36 | 0.58 | 0.44 |
| 318010.KQ | Pharmsville Co Ltd | 0 | 0.33 | 0.33 |
| 4137.TW | Chlitina Holding Ltd | 0.21 | 0.6 | 0.51 |
| 943.HK | Zhongzheng International Co Ltd | 10.49 | 0.97 | 0.1 |
| APCO.BK | Asian Phytoceuticals PCL | 0.01 | 0.63 | 0.62 |
| BIOHLDG.KL | Bioalpha Holdings Bhd | 0.16 | 1.45 | 1.28 |
| CUPID.NS | Cupid Ltd | 0 | 1.11 | 1.1 |
| ENGKAH.KL | Eng Kah Corporation Bhd | 0 | 0.62 | 0.62 |
| Low | High | |
| Unlevered beta | 0.44 | 0.52 |
| Relevered beta | 0.88 | 1.03 |
| Adjusted relevered beta | 0.92 | 1.02 |
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 (8.90%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.92) + 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.