4439.TW WACC - Weighted Average Cost of Capital
The WACC of TST Group Holding Ltd (4439.TW) is 5.9%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.7% | 6.55% |
| Tax rate | 20.6% - 22.3% | 21.45% |
| Cost of debt | 4.2% - 6.2% | 5.2% |
| WACC | 4.9% - 6.9% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.56 | 0.67 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.7% |
| Tax rate | 20.6% | 22.3% |
| Debt/Equity ratio | 0.37 | 0.37 |
| Cost of debt | 4.2% | 6.2% |
| After-tax WACC | 4.9% | 6.9% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 4439.TW | TST Group Holding Ltd | 0.37 | 0.36 | 0.28 |
| 1451.TW | Nien Hsing Textile Co Ltd | 0.06 | 0.49 | 0.47 |
| 1455.TW | Zig Sheng Industrial Co Ltd | 0.71 | 0.39 | 0.25 |
| 1457.TW | Yi Jinn Industrial Co Ltd | 1.98 | 0.55 | 0.22 |
| 1460.TW | Everest Textile Co Ltd | 0.96 | 0.33 | 0.19 |
| 1464.TW | De Licacy Industrial Co Ltd | 1.31 | 0.98 | 0.49 |
| 1466.TW | Acelon Chemicals & Fiber Corp | 0.75 | 0.83 | 0.53 |
| 1467.TW | Tex-Ray Industrial Co Ltd | 2.28 | 0.58 | 0.21 |
| 1474.TW | Honmyue Enterprise Co Ltd | 0.6 | 0.65 | 0.44 |
| 6504.TW | Nan Liu Enterprise Co Ltd | 1.25 | 0.72 | 0.36 |
| Low | High | |
| Unlevered beta | 0.27 | 0.39 |
| Relevered beta | 0.34 | 0.51 |
| Adjusted relevered beta | 0.56 | 0.67 |
4439.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 4439.TW:
cost_of_equity (6.55%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.56) + 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.