2472.TW WACC - Weighted Average Cost of Capital
The WACC of Lelon Electronics Corp (2472.TW) is 9.4%.
| Range | Selected | |
| Cost of equity | 8.5% - 12.7% | 10.6% |
| Tax rate | 21.6% - 22.1% | 21.85% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.7% - 11.2% | 9.4% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.09 | 1.39 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.5% | 12.7% |
| Tax rate | 21.6% | 22.1% |
| Debt/Equity ratio | 0.19 | 0.19 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.7% | 11.2% |
| Selected WACC | 9.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2472.TW | Lelon Electronics Corp | 0.19 | 1.3 | 1.13 |
| 2402.TW | Ichia Technologies Inc | 0.25 | 0.89 | 0.75 |
| 2478.TW | TA-I Technology Co Ltd | 0.21 | 0.74 | 0.63 |
| 2486.TW | I-Chiun Precision Industry Co Ltd | 0.22 | 1.73 | 1.47 |
| 3605.TW | Aces Electronics Co Ltd | 0.38 | 1.71 | 1.32 |
| 3694.TW | AzureWave Technologies Inc | 0.02 | 1.47 | 1.45 |
| 4943.TW | Concraft Holding Co Ltd | 0.85 | 0.29 | 0.17 |
| 6230.TW | Nidec Chaun Choung Technology Corp | 0.03 | 1.69 | 1.64 |
| 6449.TW | APAQ Technology Co Ltd | 0.18 | 1.66 | 1.46 |
| 8039.TW | Taiflex Scientific Co Ltd | 0.09 | 0.81 | 0.76 |
| Low | High | |
| Unlevered beta | 0.98 | 1.37 |
| Relevered beta | 1.13 | 1.58 |
| Adjusted relevered beta | 1.09 | 1.39 |
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 (10.60%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.09) + 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.