2357.TW WACC - Weighted Average Cost of Capital
The WACC of Asustek Computer Inc (2357.TW) is 7.3%.
| Range | Selected | |
| Cost of equity | 5.9% - 9.1% | 7.5% |
| Tax rate | 20.3% - 21.5% | 20.9% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.7% - 8.8% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.64 | 0.87 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.9% | 9.1% |
| Tax rate | 20.3% | 21.5% |
| Debt/Equity ratio | 0.06 | 0.06 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.7% | 8.8% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2357.TW | Asustek Computer Inc | 0.06 | 1.11 | 1.06 |
| 2301.TW | Lite-On Technology Corp | 0.12 | 0.93 | 0.84 |
| 2349.TW | Ritek Corp | 0.69 | 0.59 | 0.38 |
| 2352.TW | Qisda Corp | 1.55 | 1.05 | 0.47 |
| 2353.TW | Acer Inc | 0.27 | 0.95 | 0.79 |
| 2356.TW | Inventec Corp | 0.5 | 1.07 | 0.76 |
| 2362.TW | Clevo Co | 1.32 | 0.78 | 0.38 |
| 2387.TW | Sunrex Technology Corp | 0.34 | 0.5 | 0.39 |
| 6669.TW | Wiwynn Corp | 0.07 | 1.13 | 1.07 |
| 8163.TW | Darfon Electronics Corp | 0.97 | 0.68 | 0.38 |
| Low | High | |
| Unlevered beta | 0.44 | 0.77 |
| Relevered beta | 0.46 | 0.81 |
| Adjusted relevered beta | 0.64 | 0.87 |
2357.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 2357.TW:
cost_of_equity (7.50%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.64) + 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.