The WACC of Wowprime Corp (2727.TW) is 6.0%.
Range | Selected | |
Cost of equity | 5.6% - 7.7% | 6.65% |
Tax rate | 23.7% - 27.1% | 25.4% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 5.1% - 6.8% | 6.0% |
Category | Low | High |
Long-term bond rate | 2.0% | 2.5% |
Equity market risk premium | 6.0% | 7.0% |
Adjusted beta | 0.59 | 0.66 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.6% | 7.7% |
Tax rate | 23.7% | 27.1% |
Debt/Equity ratio | 0.23 | 0.23 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 5.1% | 6.8% |
Selected WACC | 6.0% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
2727.TW | Wowprime Corp | 0.23 | 0.47 | 0.4 |
3073.T | DD Holdings Co Ltd | 0.53 | 0.77 | 0.55 |
3097.T | Monogatari Corp | 0.1 | 0.5 | 0.46 |
3395.T | Saint Marc Holdings Co Ltd | 0.42 | 0.45 | 0.34 |
538.HK | Ajisen (China) Holdings Ltd | 0.7 | 0.47 | 0.31 |
6811.HK | Tai Hing Group Holdings Ltd | 1.22 | 0.13 | 0.07 |
8160.T | Kisoji Co Ltd | 0.12 | 0.3 | 0.28 |
8200.T | Ringer Hut Co Ltd | 0.14 | 0.22 | 0.2 |
8940.TW | New Palace International Co Ltd | 0.67 | 0.87 | 0.59 |
FAST.JK | Fast Food Indonesia Tbk PT | 0.88 | 1.47 | 0.89 |
Low | High | |
Unlevered beta | 0.33 | 0.42 |
Relevered beta | 0.39 | 0.49 |
Adjusted relevered beta | 0.59 | 0.66 |
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 2727.TW:
cost_of_equity (6.65%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.59) + 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.