3149.TW WACC - Weighted Average Cost of Capital

The WACC of G-Tech Optoelectronics Corp (3149.TW) is 7.4%.

The Cost of Equity of G-Tech Optoelectronics Corp (3149.TW) is 7.75%.

The Cost of Debt of G-Tech Optoelectronics Corp (3149.TW) is 5.50%.

	Range	Selected
Cost of equity	6.00% - 9.50%	7.75%
Tax rate	-% - 0.40%	0.20%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.7% - 9.1%	7.4%

WACC

3149.TW WACC calculation

Category	Low	High

Long-term bond rate	2.0%	2.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.66	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.00%	9.50%

Tax rate	-%	0.40%
Debt/Equity ratio	0.2	0.2
Cost of debt	4.00%	7.00%

After-tax WACC	5.7%	9.1%


Selected WACC	7.4%

3149.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 3149.TW:

cost_of_equity (7.75%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.66) + 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.