3019.TW WACC - Weighted Average Cost of Capital
The WACC of Asia Optical Co Inc (3019.TW) is 8.2%.
| Range | Selected | |
| Cost of equity | 6.9% - 9.5% | 8.2% |
| Tax rate | 18.1% - 19.7% | 18.9% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.9% - 9.4% | 8.2% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.82 | 0.92 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.9% | 9.5% |
| Tax rate | 18.1% | 19.7% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.9% | 9.4% |
| Selected WACC | 8.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3019.TW | Asia Optical Co Inc | 0 | 0.96 | 0.96 |
| 2355.TW | Chin-Poon Industrial Co Ltd | 0.1 | 0.92 | 0.85 |
| 2368.TW | Gold Circuit Electronics Ltd | 0.05 | 0.95 | 0.91 |
| 2456.TW | Chilisin Electronics Corp | 0.35 | 1.89 | 1.47 |
| 3026.TW | Holy Stone Enterprise Co Ltd | 0.25 | 0.44 | 0.36 |
| 4927.TW | Apex International Co Ltd | 1.72 | 1.31 | 0.55 |
| 4960.TW | Cheng Mei Materials Technology Corp | 0.48 | 0.67 | 0.48 |
| 6153.TW | Career Technology MFG Co Ltd | 0.53 | 1.21 | 0.84 |
| 6271.TW | Tong Hsing Electronic Industries Ltd | 0.22 | 1.12 | 0.95 |
| 8215.TW | BenQ Materials Corp | 1.21 | 0.85 | 0.43 |
| Low | High | |
| Unlevered beta | 0.73 | 0.88 |
| Relevered beta | 0.73 | 0.88 |
| Adjusted relevered beta | 0.82 | 0.92 |
3019.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 3019.TW:
cost_of_equity (8.20%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.82) + 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.