2539.TW
Sakura Development Co Ltd
Price:  
65.4 
TWD
Volume:  
459,282
Taiwan, Province of China | Real Estate Management & Development

2539.TW WACC - Weighted Average Cost of Capital

The WACC of Sakura Development Co Ltd (2539.TW) is 5.7%.

The Cost of Equity of Sakura Development Co Ltd (2539.TW) is 6.05%.
The Cost of Debt of Sakura Development Co Ltd (2539.TW) is 4.25%.

RangeSelected
Cost of equity5.2% - 6.9%6.05%
Tax rate21.1% - 21.3%21.2%
Cost of debt4.0% - 4.5%4.25%
WACC5.0% - 6.5%5.7%
WACC

2539.TW WACC calculation

CategoryLowHigh
Long-term bond rate2.0%2.5%
Equity market risk premium6.0%7.0%
Adjusted beta0.530.55
Additional risk adjustments0.0%0.5%
Cost of equity5.2%6.9%
Tax rate21.1%21.3%
Debt/Equity ratio
0.150.15
Cost of debt4.0%4.5%
After-tax WACC5.0%6.5%
Selected WACC5.7%

2539.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 2539.TW:

cost_of_equity (6.05%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.53) + 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.