2491.TW WACC - Weighted Average Cost of Capital
The WACC of Fortune Oriental Co Ltd (2491.TW) is 7.9%.
| Range | Selected | |
| Cost of equity | 6.1% - 8.5% | 7.3% |
| Tax rate | 0.0% - 1.2% | 0.6% |
| Cost of debt | 7.0% - 32.4% | 19.7% |
| WACC | 6.2% - 9.5% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.68 | 0.78 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 8.5% |
| Tax rate | 0.0% | 1.2% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 7.0% | 32.4% |
| After-tax WACC | 6.2% | 9.5% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2491.TW | Fortune Oriental Co Ltd | 0.05 | 0.75 | 0.72 |
| 2434.TW | Mospec Semiconductor Corp | 0.19 | 0.34 | 0.29 |
| 2466.TW | Cosmo Electronics Corp | 0.12 | 0.22 | 0.2 |
| 3383.TW | Genesis Photonics Inc | 19.77 | 0.81 | 0.04 |
| 3686.TW | Danen Technology Corp | 0.01 | 0.7 | 0.69 |
| 6243.TW | Ene Technology Inc | 0.17 | 1.51 | 1.29 |
| 6289.TW | Arima Optoelectronics Corp | 0.83 | 1.2 | 0.66 |
| 6477.TW | Anji Technology Co Ltd | 1.11 | 0.93 | 0.44 |
| 6698.TW | FineMat Applied Materials Co Ltd | 0.38 | 0.89 | 0.64 |
| 8104.TW | RiTdisplay Corp | 0.77 | 0.98 | 0.55 |
| Low | High | |
| Unlevered beta | 0.51 | 0.65 |
| Relevered beta | 0.52 | 0.67 |
| Adjusted relevered beta | 0.68 | 0.78 |
2491.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 2491.TW:
cost_of_equity (7.30%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.68) + 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.