4106.TW
Apex Medical Corp
Price:  
22.2 
TWD
Volume:  
46,023
Taiwan, Province of China | Health Care Equipment & Supplies

4106.TW WACC - Weighted Average Cost of Capital

The WACC of Apex Medical Corp (4106.TW) is 6.1%.

The Cost of Equity of Apex Medical Corp (4106.TW) is 6.5%.
The Cost of Debt of Apex Medical Corp (4106.TW) is 4.25%.

RangeSelected
Cost of equity5.1% - 7.9%6.5%
Tax rate20.7% - 23.1%21.9%
Cost of debt4.0% - 4.5%4.25%
WACC4.9% - 7.3%6.1%
WACC

4106.TW WACC calculation

CategoryLowHigh
Long-term bond rate2.0%2.5%
Equity market risk premium6.0%7.0%
Adjusted beta0.520.69
Additional risk adjustments0.0%0.5%
Cost of equity5.1%7.9%
Tax rate20.7%23.1%
Debt/Equity ratio
0.140.14
Cost of debt4.0%4.5%
After-tax WACC4.9%7.3%
Selected WACC6.1%

4106.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 4106.TW:

cost_of_equity (6.50%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.52) + 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.