2406.TW WACC - Weighted Average Cost of Capital
The WACC of Gigastorage Corp (2406.TW) is 8.0%.
| Range | Selected | |
| Cost of equity | 11.0% - 13.9% | 12.45% |
| Tax rate | 4.6% - 7.9% | 6.25% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 6.7% - 9.4% | 8.0% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.51 | 1.56 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.0% | 13.9% |
| Tax rate | 4.6% | 7.9% |
| Debt/Equity ratio | 1.52 | 1.52 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 6.7% | 9.4% |
| Selected WACC | 8.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2406.TW | Gigastorage Corp | 1.52 | 0.84 | 0.34 |
| 2340.TW | Optotech Corp | 0.56 | 1.41 | 0.93 |
| 3346.TW | Laster Tech Co Ltd | 1.36 | 0.85 | 0.37 |
| 3450.TW | Elite Advanced Laser Corp | 0.02 | 1.84 | 1.81 |
| 4967.TW | Team Group Inc | 0.17 | 0.86 | 0.74 |
| 6288.TW | Excellence Optoelectronic Inc | 0.71 | 1.25 | 0.75 |
| 8081.TW | Global Mixed-Mode Technology Inc | 0 | 0.76 | 0.76 |
| 8110.TW | Walton Advanced Engineering Inc | 0.56 | 1.04 | 0.68 |
| 8131.TW | Formosa Advanced Technologies Co Ltd | 0.04 | 0.72 | 0.69 |
| 8271.TW | Apacer Technology Inc | 0.05 | 0.85 | 0.81 |
| Low | High | |
| Unlevered beta | 0.72 | 0.75 |
| Relevered beta | 1.76 | 1.84 |
| Adjusted relevered beta | 1.51 | 1.56 |
2406.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 2406.TW:
cost_of_equity (12.45%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.51) + 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.