2337.TW WACC - Weighted Average Cost of Capital
The WACC of Macronix International Co Ltd (2337.TW) is 7.4%.
| Range | Selected | |
| Cost of equity | 7.9% - 10.2% | 9.05% |
| Tax rate | 9.7% - 10.0% | 9.85% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 6.2% - 8.7% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.97 | 1.03 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.9% | 10.2% |
| Tax rate | 9.7% | 10.0% |
| Debt/Equity ratio | 0.65 | 0.65 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 6.2% | 8.7% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2337.TW | Macronix International Co Ltd | 0.65 | 0.88 | 0.56 |
| 2441.TW | Greatek Electronics Inc | 0 | 0.69 | 0.68 |
| 2449.TW | King Yuan Electronics Co Ltd | 0.18 | 1.56 | 1.34 |
| 3189.TW | Kinsus Interconnect Technology Corp | 0.52 | 1.49 | 1.02 |
| 3532.TW | Formosa Sumco Technology Corp | 0.74 | 1.07 | 0.64 |
| 3576.TW | United Renewable Energy Co Ltd | 1.02 | 0.6 | 0.31 |
| 6176.TW | Radiant Opto-Electronics Corp | 0.07 | 0.37 | 0.35 |
| 6278.TW | Taiwan Surface Mounting Technology Corp | 0.23 | 1.02 | 0.85 |
| 8131.TW | Formosa Advanced Technologies Co Ltd | 0.04 | 0.67 | 0.64 |
| 8150.TW | ChipMOS Technologies Inc | 0.73 | 0.76 | 0.46 |
| Low | High | |
| Unlevered beta | 0.61 | 0.66 |
| Relevered beta | 0.96 | 1.04 |
| Adjusted relevered beta | 0.97 | 1.03 |
2337.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 2337.TW:
cost_of_equity (9.05%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.97) + 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.