3661.TW WACC - Weighted Average Cost of Capital
The WACC of Alchip Technologies Ltd (3661.TW) is 9.7%.
| Range | Selected | |
| Cost of equity | 8.3% - 11.0% | 9.65% |
| Tax rate | 21.3% - 22.2% | 21.75% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 8.3% - 11.0% | 9.7% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.05 | 1.15 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.3% | 11.0% |
| Tax rate | 21.3% | 22.2% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 8.3% | 11.0% |
| Selected WACC | 9.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3661.TW | Alchip Technologies Ltd | 0 | 1.47 | 1.47 |
| 2458.TW | Elan Microelectronics Corp | 0.03 | 1.1 | 1.07 |
| 3443.TW | Global Unichip Corp | 0 | 1.73 | 1.72 |
| 3532.TW | Formosa Sumco Technology Corp | 0.74 | 1.07 | 0.67 |
| 3545.TW | FocalTech Systems Co Ltd | 0.07 | 0.96 | 0.91 |
| 3653.TW | Jentech Precision Industrial Co Ltd | 0 | 1.62 | 1.62 |
| 3714.TW | Ennostar Inc | 0.15 | 1.19 | 1.06 |
| 4961.TW | Fitipower Integrated Technology Inc | 0 | 0.89 | 0.89 |
| 4968.TW | RichWave Technology Corp | 0.02 | 1.38 | 1.36 |
| 6531.TW | AP Memory Technology Corp | 0 | 1.12 | 1.12 |
| Low | High | |
| Unlevered beta | 1.07 | 1.22 |
| Relevered beta | 1.07 | 1.22 |
| Adjusted relevered beta | 1.05 | 1.15 |
3661.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 3661.TW:
cost_of_equity (9.65%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.05) + 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.