1907.TW WACC - Weighted Average Cost of Capital
The WACC of YFY Inc (1907.TW) is 6.3%.
| Range | Selected | |
| Cost of equity | 7.3% - 10.5% | 8.9% |
| Tax rate | 19.5% - 20.6% | 20.05% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.9% - 7.6% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.88 | 1.07 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.3% | 10.5% |
| Tax rate | 19.5% | 20.6% |
| Debt/Equity ratio | 1.4 | 1.4 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.9% | 7.6% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1907.TW | YFY Inc | 1.4 | 0.51 | 0.24 |
| 1903.TW | Shihlin Paper Corp | 0.22 | 0.8 | 0.68 |
| 1905.TW | Chung Hwa Pulp Corp | 1.09 | 0.93 | 0.5 |
| 1909.TW | Longchen Paper & Packaging Co Ltd | 3.39 | 0.77 | 0.21 |
| 213500.KS | Hansol Paper Co Ltd | 3.98 | 0.36 | 0.09 |
| 2314.HK | Lee & Man Paper Manufacturing Ltd | 2.2 | 0.97 | 0.35 |
| 3864.T | Mitsubishi Paper Mills Ltd | 2.52 | 1.23 | 0.41 |
| 3865.T | Hokuetsu Corp | 0.47 | 0.77 | 0.56 |
| 600308.SS | Shandong Huatai Paper Industry Shareholding Co Ltd | 0.65 | 1.11 | 0.73 |
| 600567.SS | Shanying International Holdings Co Ltd | 2.43 | 1.74 | 0.59 |
| Low | High | |
| Unlevered beta | 0.39 | 0.52 |
| Relevered beta | 0.82 | 1.1 |
| Adjusted relevered beta | 0.88 | 1.07 |
1907.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 1907.TW:
cost_of_equity (8.90%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.88) + 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.