2430.TW WACC - Weighted Average Cost of Capital
The WACC of Tsann Kuen Enterprise Co Ltd (2430.TW) is 4.5%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.7% | 6.55% |
| Tax rate | 19.8% - 20.4% | 20.1% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.0% - 5.0% | 4.5% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.57 | 0.67 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.7% |
| Tax rate | 19.8% | 20.4% |
| Debt/Equity ratio | 1.83 | 1.83 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.0% | 5.0% |
| Selected WACC | 4.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2430.TW | Tsann Kuen Enterprise Co Ltd | 1.83 | 0.23 | 0.1 |
| 2450.TW | Senao International Co Ltd | 0.09 | 0.35 | 0.33 |
| 2616.TW | Shan-Loong Transportation Co Ltd | 1.8 | 0.43 | 0.18 |
| 600122.SS | Jiangsu Hongtu High Technology Co Ltd | 16.56 | 0.89 | 0.06 |
| 6281.TW | E-Life Mall Corp | 0.47 | 0.09 | 0.06 |
| 8202.T | Laox Co Ltd | 0.22 | 0.86 | 0.73 |
| 9441.T | Bell-Park Co Ltd | 0 | 0.23 | 0.23 |
| 9937.TW | National Petroleum Co Ltd | 0.11 | 0.2 | 0.19 |
| FRT.VN | FPT Digital Retail JSC | 0.39 | 1.1 | 0.84 |
| VTG.AX | Vita Group Ltd | 0.5 | -0.05 | -0.04 |
| Low | High | |
| Unlevered beta | 0.14 | 0.2 |
| Relevered beta | 0.36 | 0.51 |
| Adjusted relevered beta | 0.57 | 0.67 |
2430.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 2430.TW:
cost_of_equity (6.55%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.57) + 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.