2911.TW WACC - Weighted Average Cost of Capital
The WACC of Les Enphants Co Ltd (2911.TW) is 5.4%.
| Range | Selected | |
| Cost of equity | 5.1% - 8.0% | 6.55% |
| Tax rate | 4.1% - 6.1% | 5.1% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.1% - 6.8% | 5.4% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.51 | 0.72 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 8.0% |
| Tax rate | 4.1% | 6.1% |
| Debt/Equity ratio | 4.88 | 4.88 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.1% | 6.8% |
| Selected WACC | 5.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2911.TW | Les Enphants Co Ltd | 4.88 | 0.36 | 0.06 |
| 002656.SZ | Modern Avenue Group Co Ltd | 0.03 | -0.01 | -0.01 |
| 1806.TW | Champion Building Materials Co Ltd | 0.37 | 0.04 | 0.03 |
| 2528.HK | Forward Fashion (International) Holdings Co Ltd | 4.06 | 0.35 | 0.07 |
| 2668.T | Tabio Corp | 0.12 | 0.12 | 0.11 |
| 3607.T | Kuraudia Holdings Co Ltd | 1.84 | 0.85 | 0.31 |
| 533.HK | Goldlion Holdings Ltd | 0.03 | -0.02 | -0.02 |
| BCONCEPTS.NS | Brand Concepts Ltd | 0.16 | 0.92 | 0.8 |
| FLFL.NS | Future Lifestyle Fashions Ltd | 60.17 | -0.74 | -0.01 |
| TGL.KL | Teo Guan Lee Corporation Bhd | 0.14 | 0.66 | 0.59 |
| Low | High | |
| Unlevered beta | 0.05 | 0.09 |
| Relevered beta | 0.27 | 0.58 |
| Adjusted relevered beta | 0.51 | 0.72 |
2911.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 2911.TW:
cost_of_equity (6.55%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.51) + 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.