2380.TW WACC - Weighted Average Cost of Capital
The WACC of Avision Inc (2380.TW) is 7.1%.
| Range | Selected | |
| Cost of equity | 6.4% - 11.8% | 9.1% |
| Tax rate | 3.2% - 5.6% | 4.4% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.1% - 9.0% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.73 | 1.25 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 11.8% |
| Tax rate | 3.2% | 5.6% |
| Debt/Equity ratio | 1.11 | 1.11 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.1% | 9.0% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2380.TW | Avision Inc | 1.11 | 0.52 | 0.25 |
| 2365.TW | KYE Systems Corp | 0.04 | 1.01 | 0.97 |
| 2443.TW | Lead Data Inc | 0.01 | -0.68 | -0.67 |
| 3011.TW | Ji-Haw Industrial Co Ltd | 0.62 | 0.88 | 0.56 |
| 3046.TW | AOPEN Inc | 0.03 | 0.85 | 0.83 |
| 3057.TW | Promise Technology Inc | 0.27 | 1.45 | 1.15 |
| 6117.TW | In Win Development Inc | 0.17 | 1.1 | 0.94 |
| 6172.TW | Billionton Systems Inc | 0.25 | 0.31 | 0.25 |
| 6277.TW | Aten International Co Ltd | 0.08 | 0.18 | 0.17 |
| 9912.TW | Associated Industries China Inc | 0.44 | 0.44 | 0.31 |
| Low | High | |
| Unlevered beta | 0.29 | 0.67 |
| Relevered beta | 0.6 | 1.37 |
| Adjusted relevered beta | 0.73 | 1.25 |
2380.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 2380.TW:
cost_of_equity (9.10%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.73) + 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.