2939.TW WACC - Weighted Average Cost of Capital
The WACC of Kayee International Group Co Ltd (2939.TW) is 6.5%.
| Range | Selected | |
| Cost of equity | 5.1% - 8.0% | 6.55% |
| Tax rate | 11.6% - 23.4% | 17.5% |
| Cost of debt | 7.0% - 7.5% | 7.25% |
| WACC | 5.2% - 7.8% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.43 | 0.64 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 5.1% | 8.0% |
| Tax rate | 11.6% | 23.4% |
| Debt/Equity ratio | 0.1 | 0.1 |
| Cost of debt | 7.0% | 7.5% |
| After-tax WACC | 5.2% | 7.8% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2939.TW | Kayee International Group Co Ltd | 0.1 | 0.7 | 0.64 |
| 036030.KQ | KT Hitel Co Ltd | 0.05 | 0.82 | 0.79 |
| 1020.HK | Cybernaut International Holdings Co Ltd | 1.05 | 0.01 | 0.01 |
| 2614.TW | Eastern Media International Corp | 2.43 | 0.26 | 0.08 |
| 3031.T | Raccoon Holdings Inc | 0.08 | 0.37 | 0.35 |
| 3185.T | Dream Vision Co Ltd | 0.52 | 0.06 | 0.04 |
| 3192.T | Shirohato Co Ltd | 1.73 | 0.42 | 0.17 |
| 3995.T | Skiyaki Inc | 0.04 | 0.01 | 0.01 |
| AMWAY.KL | Amway (Malaysia) Holdings Bhd | 0.03 | 0.55 | 0.54 |
| HAIO.KL | Hai-O Enterprise Bhd | 0.01 | 1.15 | 1.14 |
| Low | High | |
| Unlevered beta | 0.13 | 0.42 |
| Relevered beta | 0.15 | 0.46 |
| Adjusted relevered beta | 0.43 | 0.64 |
2939.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 2939.TW:
cost_of_equity (6.55%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.43) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.