2486.TW
I-Chiun Precision Industry Co Ltd
Price:  
73.60 
TWD
Volume:  
1,778,289.00
Taiwan, Province of China | Electronic Equipment, Instruments & Components
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2486.TW WACC - Weighted Average Cost of Capital

The WACC of I-Chiun Precision Industry Co Ltd (2486.TW) is 9.3%.

The Cost of Equity of I-Chiun Precision Industry Co Ltd (2486.TW) is 9.90%.
The Cost of Debt of I-Chiun Precision Industry Co Ltd (2486.TW) is 8.90%.

Range Selected
Cost of equity 8.50% - 11.30% 9.90%
Tax rate 19.40% - 23.70% 21.55%
Cost of debt 4.00% - 13.80% 8.90%
WACC 7.5% - 11.1% 9.3%
WACC

2486.TW WACC calculation

Category Low High
Long-term bond rate 2.0% 2.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 1.08 1.18
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.50% 11.30%
Tax rate 19.40% 23.70%
Debt/Equity ratio 0.22 0.22
Cost of debt 4.00% 13.80%
After-tax WACC 7.5% 11.1%
Selected WACC 9.3%

2486.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 2486.TW:

cost_of_equity (9.90%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.08) + 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.