2069.TW
Yuen Chang Stainless Steel Co Ltd
Price:  
14.8 
TWD
Volume:  
103,103
Taiwan, Province of China | Metals & Mining

2069.TW WACC - Weighted Average Cost of Capital

The WACC of Yuen Chang Stainless Steel Co Ltd (2069.TW) is 5.1%.

The Cost of Equity of Yuen Chang Stainless Steel Co Ltd (2069.TW) is 8.15%.
The Cost of Debt of Yuen Chang Stainless Steel Co Ltd (2069.TW) is 4.25%.

RangeSelected
Cost of equity6.7% - 9.6%8.15%
Tax rate16.4% - 20.3%18.35%
Cost of debt4.0% - 4.5%4.25%
WACC4.5% - 5.7%5.1%
WACC

2069.TW WACC calculation

CategoryLowHigh
Long-term bond rate2.0%2.5%
Equity market risk premium6.0%7.0%
Adjusted beta0.780.94
Additional risk adjustments0.0%0.5%
Cost of equity6.7%9.6%
Tax rate16.4%20.3%
Debt/Equity ratio
1.891.89
Cost of debt4.0%4.5%
After-tax WACC4.5%5.7%
Selected WACC5.1%

2069.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 2069.TW:

cost_of_equity (8.15%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.78) + 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.