3533.TW WACC - Weighted Average Cost of Capital
The WACC of Lotes Co Ltd (3533.TW) is 8.7%.
| Range | Selected | |
| Cost of equity | 7.8% - 9.9% | 8.85% |
| Tax rate | 22.2% - 22.6% | 22.4% |
| Cost of debt | 4.0% - 4.6% | 4.3% |
| WACC | 7.7% - 9.7% | 8.7% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.96 | 0.98 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 9.9% |
| Tax rate | 22.2% | 22.6% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 4.0% | 4.6% |
| After-tax WACC | 7.7% | 9.7% |
| Selected WACC | 8.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3533.TW | Lotes Co Ltd | 0.03 | 1.89 | 1.85 |
| 2368.TW | Gold Circuit Electronics Ltd | 0.05 | 0.95 | 0.91 |
| 2456.TW | Chilisin Electronics Corp | 0.35 | 1.89 | 1.49 |
| 3019.TW | Asia Optical Co Inc | 0 | 0.96 | 0.96 |
| 3023.TW | Sinbon Electronics Co Ltd | 0.07 | 1.03 | 0.98 |
| 3026.TW | Holy Stone Enterprise Co Ltd | 0.25 | 0.44 | 0.37 |
| 3042.TW | TXC Corp | 0.07 | 0.53 | 0.5 |
| 3406.TW | Genius Electronic Optical Co Ltd | 0.16 | 0.87 | 0.78 |
| 6213.TW | ITEQ Corp | 0.18 | 1.05 | 0.92 |
| 6271.TW | Tong Hsing Electronic Industries Ltd | 0.22 | 1.12 | 0.95 |
| Low | High | |
| Unlevered beta | 0.92 | 0.96 |
| Relevered beta | 0.94 | 0.97 |
| Adjusted relevered beta | 0.96 | 0.98 |
3533.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 3533.TW:
cost_of_equity (8.85%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.96) + 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.