3266.TW WACC - Weighted Average Cost of Capital
The WACC of Sunty Development Co Ltd (3266.TW) is 5.5%.
| Range | Selected | |
| Cost of equity | 5.8% - 7.6% | 6.7% |
| Tax rate | 15.7% - 20.0% | 17.85% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.9% - 6.1% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.63 | 0.66 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 7.6% |
| Tax rate | 15.7% | 20.0% |
| Debt/Equity ratio | 0.63 | 0.63 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.9% | 6.1% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3266.TW | Sunty Development Co Ltd | 0.63 | 0.49 | 0.32 |
| 1442.TW | Advancetek Enterprise Co Ltd | 0.17 | 0.39 | 0.34 |
| 2506.TW | Pacific Construction Co Ltd | 0.58 | 0.47 | 0.32 |
| 2536.TW | Hung Poo Real Estate Development Co Ltd | 2.45 | 0.47 | 0.15 |
| 2538.TW | Kee Tai Properties Co Ltd | 1.47 | 0.38 | 0.17 |
| 2841.TW | Taiwan Land Development Corp | 6.51 | 1.04 | 0.16 |
| 3056.TW | ZongTai Real Estate Development Co Ltd | 0.51 | 0.58 | 0.41 |
| 5533.TW | Founding Construction Development Co Ltd | 0.35 | 0.39 | 0.3 |
| 6177.TW | Da-Li Development Co Ltd | 1.02 | 0.53 | 0.29 |
| 9946.TW | San Far Property Ltd | 1.28 | 0.75 | 0.36 |
| Low | High | |
| Unlevered beta | 0.29 | 0.32 |
| Relevered beta | 0.45 | 0.49 |
| Adjusted relevered beta | 0.63 | 0.66 |
3266.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 3266.TW:
cost_of_equity (6.70%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.63) + 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.