2408.TW WACC - Weighted Average Cost of Capital
The WACC of Nanya Technology Corp (2408.TW) is 7.1%.
| Range | Selected | |
| Cost of equity | 6.4% - 9.0% | 7.7% |
| Tax rate | 16.4% - 19.6% | 18% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.8% - 8.4% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.72 | 0.85 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 9.0% |
| Tax rate | 16.4% | 19.6% |
| Debt/Equity ratio | 0.21 | 0.21 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.8% | 8.4% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2408.TW | Nanya Technology Corp | 0.21 | 1.42 | 1.21 |
| 2337.TW | Macronix International Co Ltd | 0.66 | 0.84 | 0.54 |
| 2344.TW | Winbond Electronics Corp | 0.68 | 1.07 | 0.68 |
| 2379.TW | Realtek Semiconductor Corp | 0.02 | 0.71 | 0.7 |
| 3034.TW | Novatek Microelectronics Corp | 0 | 0.4 | 0.4 |
| 3576.TW | United Renewable Energy Co Ltd | 0.9 | 0.7 | 0.4 |
| 6176.TW | Radiant Opto-Electronics Corp | 0.06 | 0.31 | 0.3 |
| 6239.TW | Powertech Technology Inc | 0.22 | 1.06 | 0.89 |
| 8016.TW | Sitronix Technology Corp | 0.01 | 0.66 | 0.65 |
| 8150.TW | ChipMOS Technologies Inc | 0.73 | 0.7 | 0.44 |
| Low | High | |
| Unlevered beta | 0.5 | 0.66 |
| Relevered beta | 0.58 | 0.78 |
| Adjusted relevered beta | 0.72 | 0.85 |
2408.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 2408.TW:
cost_of_equity (7.70%) = 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.