2472.TW
Lelon Electronics Corp
Price:  
76.80 
TWD
Volume:  
1,109,598.00
Taiwan, Province of China | Electronic Equipment, Instruments & Components
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2472.TW WACC - Weighted Average Cost of Capital

The WACC of Lelon Electronics Corp (2472.TW) is 9.3%.

The Cost of Equity of Lelon Electronics Corp (2472.TW) is 10.35%.
The Cost of Debt of Lelon Electronics Corp (2472.TW) is 4.25%.

Range Selected
Cost of equity 8.40% - 12.30% 10.35%
Tax rate 21.60% - 22.10% 21.85%
Cost of debt 4.00% - 4.50% 4.25%
WACC 7.6% - 10.9% 9.3%
WACC

2472.TW WACC calculation

Category Low High
Long-term bond rate 2.0% 2.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 1.07 1.33
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.40% 12.30%
Tax rate 21.60% 22.10%
Debt/Equity ratio 0.19 0.19
Cost of debt 4.00% 4.50%
After-tax WACC 7.6% 10.9%
Selected WACC 9.3%

2472.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 2472.TW:

cost_of_equity (10.35%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.07) + 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.