3701.TW WACC - Weighted Average Cost of Capital
The WACC of FIC Global Inc (3701.TW) is 8.0%.
| Range | Selected | |
| Cost of equity | 7.3% - 10.2% | 8.75% |
| Tax rate | 14.0% - 20.2% | 17.1% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.8% - 9.3% | 8.0% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.88 | 1.02 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.3% | 10.2% |
| Tax rate | 14.0% | 20.2% |
| Debt/Equity ratio | 0.16 | 0.16 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.8% | 9.3% |
| Selected WACC | 8.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3701.TW | FIC Global Inc | 0.16 | 1.01 | 0.9 |
| 2317.TW | Hon Hai Precision Industry Co Ltd | 0.44 | 1.39 | 1.03 |
| 2354.TW | Foxconn Technology Co Ltd | 0.11 | 1.03 | 0.95 |
| 2413.TW | Universal Microelectronics Co Ltd | 0.69 | 0.93 | 0.6 |
| 2439.TW | Merry Electronics Co Ltd | 0.12 | 0.8 | 0.73 |
| 3060.TW | Min Aik Technology Co Ltd | 0.19 | 1.23 | 1.06 |
| 3694.TW | AzureWave Technologies Inc | 0.02 | 1.27 | 1.25 |
| 6116.TW | Hannstar Display Corp | 0.3 | 0.91 | 0.73 |
| 6191.TW | Global Brands Manufacture Ltd | 0.27 | 0.83 | 0.68 |
| 6635.T | Di-Nikko Engineering Co Ltd | 3.82 | 0.8 | 0.2 |
| Low | High | |
| Unlevered beta | 0.73 | 0.92 |
| Relevered beta | 0.82 | 1.03 |
| Adjusted relevered beta | 0.88 | 1.02 |
3701.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 3701.TW:
cost_of_equity (8.75%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.88) + 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.