3189.TW WACC - Weighted Average Cost of Capital

The WACC of Kinsus Interconnect Technology Corp (3189.TW) is 8.9%.

The Cost of Equity of Kinsus Interconnect Technology Corp (3189.TW) is 11.95%.

The Cost of Debt of Kinsus Interconnect Technology Corp (3189.TW) is 4.25%.

	Range	Selected
Cost of equity	9.80% - 14.10%	11.95%
Tax rate	17.10% - 17.50%	17.30%
Cost of debt	4.00% - 4.50%	4.25%
WACC	7.5% - 10.4%	8.9%

WACC

3189.TW WACC calculation

Category	Low	High

Long-term bond rate	2.0%	2.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.3	1.58

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	14.10%

Tax rate	17.10%	17.50%
Debt/Equity ratio	0.56	0.56
Cost of debt	4.00%	4.50%

After-tax WACC	7.5%	10.4%


Selected WACC	8.9%

3189.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 3189.TW:

cost_of_equity (11.95%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.3) + 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.