2383.TW WACC - Weighted Average Cost of Capital
The WACC of Elite Material Co Ltd (2383.TW) is 8.6%.
| Range | Selected | |
| Cost of equity | 7.7% - 9.9% | 8.8% |
| Tax rate | 20.8% - 22.2% | 21.5% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.5% - 9.6% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.95 | 0.99 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.7% | 9.9% |
| Tax rate | 20.8% | 22.2% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.5% | 9.6% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2383.TW | Elite Material Co Ltd | 0.05 | 0.87 | 0.84 |
| 2328.TW | Pan-International Industrial Corp | 0.06 | 1.12 | 1.07 |
| 2367.TW | Unitech Printed Circuit Board Corp | 0.35 | 1.11 | 0.87 |
| 2368.TW | Gold Circuit Electronics Ltd | 0.05 | 0.95 | 0.91 |
| 2456.TW | Chilisin Electronics Corp | 0.35 | 1.89 | 1.48 |
| 3023.TW | Sinbon Electronics Co Ltd | 0.07 | 1.03 | 0.98 |
| 3533.TW | Lotes Co Ltd | 0.03 | 1.89 | 1.85 |
| 6213.TW | ITEQ Corp | 0.18 | 1.05 | 0.92 |
| 6269.TW | Flexium Interconnect Inc | 0.23 | 1.01 | 0.85 |
| 8213.TW | Taiwan Printed Circuit Board Techvest Co Ltd | 0.83 | 0.65 | 0.39 |
| Low | High | |
| Unlevered beta | 0.9 | 0.94 |
| Relevered beta | 0.93 | 0.99 |
| Adjusted relevered beta | 0.95 | 0.99 |
2383.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 2383.TW:
cost_of_equity (8.80%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.95) + 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.