2436.TW WACC - Weighted Average Cost of Capital
The WACC of Weltrend Semiconductor Inc (2436.TW) is 8.5%.
| Range | Selected | |
| Cost of equity | 8.1% - 10.2% | 9.15% |
| Tax rate | 9.0% - 11.4% | 10.2% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.5% - 9.5% | 8.5% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.01 | 1.03 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.1% | 10.2% |
| Tax rate | 9.0% | 11.4% |
| Debt/Equity ratio | 0.14 | 0.14 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.5% | 9.5% |
| Selected WACC | 8.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2436.TW | Weltrend Semiconductor Inc | 0.14 | 1.54 | 1.37 |
| 2426.TW | Tyntek Corp | 0.1 | 0.98 | 0.9 |
| 2466.TW | Cosmo Electronics Corp | 0.12 | 0.27 | 0.24 |
| 2493.TW | Ampoc Far-East Co Ltd | 0 | 0.91 | 0.9 |
| 3041.TW | ALi Corp | 0.16 | 1.58 | 1.38 |
| 4934.TW | Tainergy Tech Co Ltd | 0.09 | 0.98 | 0.91 |
| 4952.TW | Generalplus Technology Inc | 0.03 | 0.98 | 0.96 |
| 6477.TW | Anji Technology Co Ltd | 1.21 | 1.02 | 0.49 |
| 6552.TW | JMC Electronics Co Ltd | 0.52 | 1.2 | 0.81 |
| 8028.TW | Phoenix Silicon International Corp | 0.19 | 1.66 | 1.42 |
| Low | High | |
| Unlevered beta | 0.9 | 0.93 |
| Relevered beta | 1.01 | 1.04 |
| Adjusted relevered beta | 1.01 | 1.03 |
2436.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 2436.TW:
cost_of_equity (9.15%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.01) + 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.