2438.TW
Enlight Corp
Price:  
27.15 
TWD
Volume:  
58,728
Taiwan, Province of China | Technology Hardware, Storage & Peripherals

2438.TW WACC - Weighted Average Cost of Capital

The WACC of Enlight Corp (2438.TW) is 5.9%.

The Cost of Equity of Enlight Corp (2438.TW) is 6.7%.
The Cost of Debt of Enlight Corp (2438.TW) is 5.5%.

RangeSelected
Cost of equity5.7% - 7.7%6.7%
Tax rate24.6% - 33.3%28.95%
Cost of debt4.0% - 7.0%5.5%
WACC5.0% - 6.9%5.9%
WACC

2438.TW WACC calculation

CategoryLowHigh
Long-term bond rate2.0%2.5%
Equity market risk premium6.0%7.0%
Adjusted beta0.610.67
Additional risk adjustments0.0%0.5%
Cost of equity5.7%7.7%
Tax rate24.6%33.3%
Debt/Equity ratio
0.370.37
Cost of debt4.0%7.0%
After-tax WACC5.0%6.9%
Selected WACC5.9%

2438.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 2438.TW:

cost_of_equity (6.70%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.61) + 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.