2438.TW WACC - Weighted Average Cost of Capital
The WACC of Enlight Corp (2438.TW) is 5.9%.
| Range | Selected | |
| Cost of equity | 5.7% - 7.7% | 6.7% |
| Tax rate | 24.6% - 33.3% | 28.95% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.0% - 6.9% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.61 | 0.67 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 7.7% |
| Tax rate | 24.6% | 33.3% |
| Debt/Equity ratio | 0.37 | 0.37 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.0% | 6.9% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2438.TW | Enlight Corp | 0.37 | 0.89 | 0.71 |
| 2364.TW | Twinhead International Corp | 0.14 | 1.3 | 1.19 |
| 2380.TW | Avision Inc | 1.07 | 0.52 | 0.3 |
| 2443.TW | Lead Data Inc | 0.01 | -0.68 | -0.67 |
| 3050.TW | U-Tech Media Corp | 1.01 | 0.77 | 0.45 |
| 3054.TW | LIWANLI Innovation Co Ltd | 0 | 0.53 | 0.53 |
| 6172.TW | Billionton Systems Inc | 0.25 | 0.31 | 0.26 |
| 6277.TW | Aten International Co Ltd | 0.08 | 0.19 | 0.18 |
| 8101.TW | Arima Communications Corp | 0.16 | 0.41 | 0.37 |
| 9912.TW | Associated Industries China Inc | 0.44 | 0.46 | 0.35 |
| Low | High | |
| Unlevered beta | 0.33 | 0.4 |
| Relevered beta | 0.42 | 0.51 |
| Adjusted relevered beta | 0.61 | 0.67 |
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.