3033.TW WACC - Weighted Average Cost of Capital
The WACC of Weikeng Industrial Co Ltd (3033.TW) is 5.9%.
| Range | Selected | |
| Cost of equity | 7.3% - 10.4% | 8.85% |
| Tax rate | 25.0% - 25.9% | 25.45% |
| Cost of debt | 4.0% - 5.7% | 4.85% |
| WACC | 4.9% - 6.9% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.88 | 1.06 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.3% | 10.4% |
| Tax rate | 25.0% | 25.9% |
| Debt/Equity ratio | 1.29 | 1.29 |
| Cost of debt | 4.0% | 5.7% |
| After-tax WACC | 4.9% | 6.9% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3033.TW | Weikeng Industrial Co Ltd | 1.29 | 0.75 | 0.38 |
| 2373.TW | Aurora Corp | 0.39 | 0.2 | 0.15 |
| 2468.TW | Fortune Information Systems Corp | 0 | 0.65 | 0.65 |
| 2480.TW | Stark Technology Inc | 0.01 | 0.64 | 0.64 |
| 3028.TW | Zenitron Corp | 1.08 | 0.28 | 0.16 |
| 3029.TW | Zero One Technology Co Ltd | 0 | 1.17 | 1.17 |
| 3090.TW | Nichidenbo Corp | 0.15 | 0.55 | 0.5 |
| 3209.TW | Alltek Technology Corp | 0.79 | 0.48 | 0.3 |
| 3528.TW | Answer Technology Co Ltd | 0.49 | 0.61 | 0.44 |
| 6189.TW | Promate Electronic Co Ltd | 0.21 | 0.79 | 0.69 |
| Low | High | |
| Unlevered beta | 0.42 | 0.55 |
| Relevered beta | 0.82 | 1.09 |
| Adjusted relevered beta | 0.88 | 1.06 |
3033.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 3033.TW:
cost_of_equity (8.85%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.88) + 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.