3346.TW WACC - Weighted Average Cost of Capital
The WACC of Laster Tech Co Ltd (3346.TW) is 7.0%.
| Range | Selected | |
| Cost of equity | 9.3% - 12.6% | 10.95% |
| Tax rate | 7.0% - 13.7% | 10.35% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.3% - 7.8% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.22 | 1.37 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.3% | 12.6% |
| Tax rate | 7.0% | 13.7% |
| Debt/Equity ratio | 1.2 | 1.2 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.3% | 7.8% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3346.TW | Laster Tech Co Ltd | 1.2 | 0.88 | 0.42 |
| 2369.TW | Lingsen Precision Industries Ltd | 0.19 | 0.98 | 0.83 |
| 2466.TW | Cosmo Electronics Corp | 0.12 | 0.22 | 0.2 |
| 3437.TW | Advanced Optoelectronic Technology Inc | 0 | 1.2 | 1.2 |
| 6288.TW | Excellence Optoelectronic Inc | 0.66 | 1.21 | 0.76 |
| 6477.TW | Anji Technology Co Ltd | 1.11 | 0.93 | 0.47 |
| 6552.TW | JMC Electronics Co Ltd | 0.47 | 1.04 | 0.73 |
| 8104.TW | RiTdisplay Corp | 0.77 | 0.98 | 0.58 |
| 8110.TW | Walton Advanced Engineering Inc | 0.56 | 1.02 | 0.68 |
| 8261.TW | Advanced Power Electronics Corp | 0 | 1.26 | 1.26 |
| Low | High | |
| Unlevered beta | 0.64 | 0.74 |
| Relevered beta | 1.33 | 1.55 |
| Adjusted relevered beta | 1.22 | 1.37 |
3346.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 3346.TW:
cost_of_equity (10.95%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.22) + 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.