4133.TW
Abnova Taiwan Corp
Price:  
28.85 
TWD
Volume:  
77,975.00
Taiwan, Province of China | Life Sciences Tools & Services
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4133.TW WACC - Weighted Average Cost of Capital

The WACC of Abnova Taiwan Corp (4133.TW) is 7.6%.

The Cost of Equity of Abnova Taiwan Corp (4133.TW) is 7.65%.
The Cost of Debt of Abnova Taiwan Corp (4133.TW) is 4.25%.

Range Selected
Cost of equity 6.30% - 9.00% 7.65%
Tax rate 19.00% - 21.40% 20.20%
Cost of debt 4.00% - 4.50% 4.25%
WACC 6.2% - 8.9% 7.6%
WACC

4133.TW WACC calculation

Category Low High
Long-term bond rate 2.0% 2.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.71 0.85
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.30% 9.00%
Tax rate 19.00% 21.40%
Debt/Equity ratio 0.01 0.01
Cost of debt 4.00% 4.50%
After-tax WACC 6.2% 8.9%
Selected WACC 7.6%

4133.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 4133.TW:

cost_of_equity (7.65%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.71) + 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.