2911.TW
Les Enphants Co Ltd
Price:  
5.20 
TWD
Volume:  
7,161.00
Taiwan, Province of China | Specialty Retail
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2911.TW WACC - Weighted Average Cost of Capital

The WACC of Les Enphants Co Ltd (2911.TW) is 5.4%.

The Cost of Equity of Les Enphants Co Ltd (2911.TW) is 6.30%.
The Cost of Debt of Les Enphants Co Ltd (2911.TW) is 5.50%.

Range Selected
Cost of equity 4.90% - 7.70% 6.30%
Tax rate 4.10% - 6.10% 5.10%
Cost of debt 4.00% - 7.00% 5.50%
WACC 4.0% - 6.8% 5.4%
WACC

2911.TW WACC calculation

Category Low High
Long-term bond rate 2.0% 2.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.47 0.67
Additional risk adjustments 0.0% 0.5%
Cost of equity 4.90% 7.70%
Tax rate 4.10% 6.10%
Debt/Equity ratio 4.9 4.9
Cost of debt 4.00% 7.00%
After-tax WACC 4.0% 6.8%
Selected WACC 5.4%

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 (6.30%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.47) + 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.