2727.TW
Wowprime Corp
Price:  
237 
TWD
Volume:  
721,016
Taiwan, Province of China | Hotels, Restaurants & Leisure

2727.TW WACC - Weighted Average Cost of Capital

The WACC of Wowprime Corp (2727.TW) is 6.0%.

The Cost of Equity of Wowprime Corp (2727.TW) is 6.65%.
The Cost of Debt of Wowprime Corp (2727.TW) is 4.25%.

RangeSelected
Cost of equity5.6% - 7.7%6.65%
Tax rate23.7% - 27.1%25.4%
Cost of debt4.0% - 4.5%4.25%
WACC5.1% - 6.8%6.0%
WACC

2727.TW WACC calculation

CategoryLowHigh
Long-term bond rate2.0%2.5%
Equity market risk premium6.0%7.0%
Adjusted beta0.590.66
Additional risk adjustments0.0%0.5%
Cost of equity5.6%7.7%
Tax rate23.7%27.1%
Debt/Equity ratio
0.230.23
Cost of debt4.0%4.5%
After-tax WACC5.1%6.8%
Selected WACC6.0%

2727.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 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.