4564.TW WACC - Weighted Average Cost of Capital
The WACC of Mosa Industrial Corp (4564.TW) is 5.6%.
| Range | Selected | |
| Cost of equity | 5.2% - 7.0% | 6.1% |
| Tax rate | 7.7% - 15.0% | 11.35% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.6% - 6.6% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.53 | 0.57 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 7.0% |
| Tax rate | 7.7% | 15.0% |
| Debt/Equity ratio | 0.72 | 0.72 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.6% | 6.6% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 4564.TW | Mosa Industrial Corp | 0.72 | 0.56 | 0.34 |
| 066130.KQ | Haatz Inc | 0.34 | 0.23 | 0.18 |
| 1541.TW | Chang Type Industrial Co Ltd | 0.19 | 0.53 | 0.46 |
| 1558.TW | Zeng Hsing Industrial Co Ltd | 0.27 | 0.47 | 0.38 |
| 1614.TW | Taiwan Sanyo Electric Co Ltd | 0 | 0.22 | 0.22 |
| 3024.TW | Action Electronics Co Ltd | 0.16 | 0.21 | 0.18 |
| 4930.TW | Star Comgistic Capital Co Ltd | 1.04 | 0.41 | 0.21 |
| 6201.TW | Ya Horng Electronic Co Ltd | 0.01 | 0.18 | 0.17 |
| 9911.TW | Taiwan Sakura Corp | 0.04 | 0.16 | 0.16 |
| TSR.BK | Thiensurat PCL | 17.72 | 1.44 | 0.09 |
| Low | High | |
| Unlevered beta | 0.18 | 0.22 |
| Relevered beta | 0.3 | 0.36 |
| Adjusted relevered beta | 0.53 | 0.57 |
4564.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 4564.TW:
cost_of_equity (6.10%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.53) + 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.