3019.TW
Asia Optical Co Inc
Price:  
132 
TWD
Volume:  
12,119,327
Taiwan, Province of China | Electronic Equipment, Instruments & Components

3019.TW WACC - Weighted Average Cost of Capital

The WACC of Asia Optical Co Inc (3019.TW) is 8.2%.

The Cost of Equity of Asia Optical Co Inc (3019.TW) is 8.2%.
The Cost of Debt of Asia Optical Co Inc (3019.TW) is 4.25%.

RangeSelected
Cost of equity6.9% - 9.5%8.2%
Tax rate18.1% - 19.7%18.9%
Cost of debt4.0% - 4.5%4.25%
WACC6.9% - 9.4%8.2%
WACC

3019.TW WACC calculation

CategoryLowHigh
Long-term bond rate2.0%2.5%
Equity market risk premium6.0%7.0%
Adjusted beta0.820.92
Additional risk adjustments0.0%0.5%
Cost of equity6.9%9.5%
Tax rate18.1%19.7%
Debt/Equity ratio
00
Cost of debt4.0%4.5%
After-tax WACC6.9%9.4%
Selected WACC8.2%

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.