2493.TW WACC - Weighted Average Cost of Capital
The WACC of Ampoc Far-East Co Ltd (2493.TW) is 8.7%.
| Range | Selected | |
| Cost of equity | 7.5% - 10.0% | 8.75% |
| Tax rate | 20.5% - 21.2% | 20.85% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.5% - 10.0% | 8.7% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.92 | 1 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 10.0% |
| Tax rate | 20.5% | 21.2% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.5% | 10.0% |
| Selected WACC | 8.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2493.TW | Ampoc Far-East Co Ltd | 0 | 0.85 | 0.85 |
| 2466.TW | Cosmo Electronics Corp | 0.12 | 0.22 | 0.2 |
| 3041.TW | ALi Corp | 0.18 | 1.48 | 1.29 |
| 3591.TW | Edison Opto Corp | 0.1 | 1.12 | 1.04 |
| 4934.TW | Tainergy Tech Co Ltd | 0.09 | 0.95 | 0.89 |
| 4952.TW | Generalplus Technology Inc | 0.02 | 0.98 | 0.97 |
| 6168.TW | Harvatek Corp | 0.02 | 1.05 | 1.03 |
| 6552.TW | JMC Electronics Co Ltd | 0.47 | 1.04 | 0.76 |
| 8104.TW | RiTdisplay Corp | 0.77 | 0.98 | 0.61 |
| 8261.TW | Advanced Power Electronics Corp | 0 | 1.26 | 1.26 |
| Low | High | |
| Unlevered beta | 0.87 | 0.99 |
| Relevered beta | 0.88 | 1 |
| Adjusted relevered beta | 0.92 | 1 |
2493.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 2493.TW:
cost_of_equity (8.75%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.92) + 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.