3041.TW WACC - Weighted Average Cost of Capital
The WACC of ALi Corp (3041.TW) is 7.9%.
| Range | Selected | |
| Cost of equity | 6.8% - 9.4% | 8.1% |
| Tax rate | 19.1% - 27.3% | 23.2% |
| Cost of debt | 7.0% - 11.1% | 9.05% |
| WACC | 6.6% - 9.2% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.8 | 0.92 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 9.4% |
| Tax rate | 19.1% | 27.3% |
| Debt/Equity ratio | 0.19 | 0.19 |
| Cost of debt | 7.0% | 11.1% |
| After-tax WACC | 6.6% | 9.2% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3041.TW | ALi Corp | 0.19 | 1.58 | 1.37 |
| 2466.TW | Cosmo Electronics Corp | 0.12 | 0.23 | 0.21 |
| 2493.TW | Ampoc Far-East Co Ltd | 0 | 0.88 | 0.88 |
| 3346.TW | Laster Tech Co Ltd | 1.36 | 0.85 | 0.41 |
| 3383.TW | Genesis Photonics Inc | 19.77 | 0.81 | 0.05 |
| 4934.TW | Tainergy Tech Co Ltd | 0.09 | 0.99 | 0.92 |
| 6477.TW | Anji Technology Co Ltd | 1.23 | 1.05 | 0.53 |
| 6698.TW | FineMat Applied Materials Co Ltd | 0.38 | 0.89 | 0.68 |
| 8028.TW | Phoenix Silicon International Corp | 0.2 | 1.86 | 1.6 |
| 8104.TW | RiTdisplay Corp | 0.75 | 1.04 | 0.65 |
| Low | High | |
| Unlevered beta | 0.6 | 0.76 |
| Relevered beta | 0.7 | 0.88 |
| Adjusted relevered beta | 0.8 | 0.92 |
3041.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 3041.TW:
cost_of_equity (8.10%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.8) + 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.