2611.TW WACC - Weighted Average Cost of Capital
The WACC of Tze Shin International Co Ltd (2611.TW) is 5.4%.
| Range | Selected | |
| Cost of equity | 4.4% - 6.9% | 5.65% |
| Tax rate | 1.6% - 2.4% | 2% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.4% - 6.5% | 5.4% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.4 | 0.56 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.4% | 6.9% |
| Tax rate | 1.6% | 2.4% |
| Debt/Equity ratio | 0.23 | 0.23 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.4% | 6.5% |
| Selected WACC | 5.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2611.TW | Tze Shin International Co Ltd | 0.23 | 0.62 | 0.5 |
| 000650.KS | Chunil Express Co Ltd | 0.25 | 0.31 | 0.25 |
| 052300.KQ | W Holding Company Co Ltd | 0.16 | -0.17 | -0.15 |
| 77.HK | Ams Public Transport Holdings Ltd | 2.35 | 0.36 | 0.11 |
| DL1.VN | Viet Nam Renewable Energy Group JSC | 1.02 | 1.42 | 0.71 |
| KIAT.BK | Kiattana Transport PCL | 0.11 | 0.59 | 0.54 |
| KTB.KL | Konsortium Transnasional Bhd | 0.08 | 0.35 | 0.33 |
| PTRANS.KL | Perak Transit Bhd | 0.67 | 0.1 | 0.06 |
| VNS.VN | Vietnam Sun Corp | 0.4 | 0.06 | 0.04 |
| XINHWA.KL | Xin Hwa Holdings Bhd | 4.01 | 0.22 | 0.04 |
| Low | High | |
| Unlevered beta | 0.09 | 0.28 |
| Relevered beta | 0.1 | 0.34 |
| Adjusted relevered beta | 0.4 | 0.56 |
2611.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 2611.TW:
cost_of_equity (5.65%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.4) + 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.