2377.TW WACC - Weighted Average Cost of Capital
The WACC of Micro-Star International Co Ltd (2377.TW) is 8.0%.
| Range | Selected | |
| Cost of equity | 6.3% - 9.8% | 8.05% |
| Tax rate | 18.0% - 18.3% | 18.15% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.3% - 9.8% | 8.0% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.72 | 0.97 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 9.8% |
| Tax rate | 18.0% | 18.3% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.3% | 9.8% |
| Selected WACC | 8.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2377.TW | Micro-Star International Co Ltd | 0.01 | 1.18 | 1.18 |
| 2301.TW | Lite-On Technology Corp | 0.13 | 0.93 | 0.85 |
| 2352.TW | Qisda Corp | 1.51 | 1.06 | 0.47 |
| 2376.TW | Gigabyte Technology Co Ltd | 0.11 | 1.37 | 1.26 |
| 2385.TW | Chicony Electronics Co Ltd | 0.07 | 0.53 | 0.5 |
| 2395.TW | Advantech Co Ltd | 0.01 | 1.12 | 1.12 |
| 2474.TW | Catcher Technology Co Ltd | 0.34 | 0.54 | 0.42 |
| 4915.TW | Primax Electronics Ltd | 0.12 | 0.66 | 0.6 |
| 6414.TW | Ennoconn Corp | 0.98 | 0.97 | 0.53 |
| 6669.TW | Wiwynn Corp | 0.07 | 1.2 | 1.13 |
| Low | High | |
| Unlevered beta | 0.57 | 0.95 |
| Relevered beta | 0.58 | 0.96 |
| Adjusted relevered beta | 0.72 | 0.97 |
2377.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 2377.TW:
cost_of_equity (8.05%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.72) + 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.