The WACC of Sintronic Technology Inc (3536.TW) is 7.4%.
Range | Selected | |
Cost of equity | 8.9% - 13.6% | 11.25% |
Tax rate | 0.0% - 0.0% | 0% |
Cost of debt | 4.0% - 7.0% | 5.5% |
WACC | 5.6% - 9.1% | 7.4% |
Category | Low | High |
Long-term bond rate | 2.0% | 2.5% |
Equity market risk premium | 6.0% | 7.0% |
Adjusted beta | 1.15 | 1.51 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.9% | 13.6% |
Tax rate | 0.0% | 0.0% |
Debt/Equity ratio | 2.1 | 2.1 |
Cost of debt | 4.0% | 7.0% |
After-tax WACC | 5.6% | 9.1% |
Selected WACC | 7.4% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
3536.TW | Sintronic Technology Inc | 2.1 | 0.89 | 0.29 |
1529.TW | Klingon Aerospace Inc | 0.33 | 0.95 | 0.71 |
1615.TW | Dah San Electric Wire & Cable Corp | 0.12 | 0.45 | 0.4 |
2440.TW | Space Shuttle Hi-Tech Co Ltd | 0.53 | 0.52 | 0.34 |
3002.TW | Ahoku Electronic Co | 0.02 | 0.77 | 0.75 |
3043.TW | Powercom Co Ltd | 0.41 | 1.06 | 0.75 |
3308.TW | Bestec Power Electronics Co Ltd | 0.97 | 0.93 | 0.47 |
3550.TW | Copartner Technology Corp | 1.75 | 1.08 | 0.39 |
6115.TW | I-Sheng Electric Wire & Cable Co Ltd | 0.18 | 0.27 | 0.23 |
6133.TW | Golden Bridge Electech Inc | 0.34 | 1.1 | 0.82 |
Low | High | |
Unlevered beta | 0.4 | 0.57 |
Relevered beta | 1.22 | 1.76 |
Adjusted relevered beta | 1.15 | 1.51 |
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 3536.TW:
cost_of_equity (11.25%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.15) + 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.