2342.TW WACC - Weighted Average Cost of Capital
The WACC of Mosel Vitelic Inc (2342.TW) is 8.8%.
| Range | Selected | |
| Cost of equity | 7.8% - 10.5% | 9.15% |
| Tax rate | 0.0% - 0.0% | 0% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.5% - 10.0% | 8.8% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.96 | 1.07 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 10.5% |
| Tax rate | 0.0% | 0.0% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.5% | 10.0% |
| Selected WACC | 8.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2342.TW | Mosel Vitelic Inc | 0.08 | 0.95 | 0.88 |
| 2466.TW | Cosmo Electronics Corp | 0.12 | 0.22 | 0.2 |
| 3031.TW | Bright Led Electronics Corp | 0.04 | 1.1 | 1.06 |
| 3041.TW | ALi Corp | 0.19 | 1.41 | 1.19 |
| 3257.TW | Champion Microelectronic Corp | 0.1 | 1.12 | 1.02 |
| 3588.TW | Leadtrend Technology Corp | 0.02 | 1.12 | 1.09 |
| 4934.TW | Tainergy Tech Co Ltd | 0.1 | 0.95 | 0.87 |
| 6168.TW | Harvatek Corp | 0.02 | 1.05 | 1.02 |
| 6477.TW | Anji Technology Co Ltd | 1.2 | 0.93 | 0.42 |
| 8104.TW | RiTdisplay Corp | 0.78 | 0.96 | 0.54 |
| Low | High | |
| Unlevered beta | 0.88 | 1.02 |
| Relevered beta | 0.94 | 1.1 |
| Adjusted relevered beta | 0.96 | 1.07 |
2342.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 2342.TW:
cost_of_equity (9.15%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.96) + 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.