4576.TW WACC - Weighted Average Cost of Capital
The WACC of Hiwin Mikrosystem Corp (4576.TW) is 6.8%.
| Range | Selected | |
| Cost of equity | 5.9% - 8.2% | 7.05% |
| Tax rate | 13.6% - 15.3% | 14.45% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.7% - 7.8% | 6.8% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.65 | 0.74 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.9% | 8.2% |
| Tax rate | 13.6% | 15.3% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.7% | 7.8% |
| Selected WACC | 6.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 4576.TW | Hiwin Mikrosystem Corp | 0.09 | 0.65 | 0.61 |
| 2423.TW | Good Will Instrument Co Ltd | 0.01 | 0.33 | 0.33 |
| 3030.TW | Test Research Inc | 0 | 1.41 | 1.41 |
| 3518.TW | Paragon Technologies Co Ltd | 0.37 | 0.56 | 0.43 |
| 3669.TW | AVer Information Inc | 0.15 | 0.74 | 0.65 |
| 3712.TW | FIT Holding Co Ltd | 1.82 | 0.97 | 0.38 |
| 5283.TW | Heran Co Ltd | 0.12 | 0.29 | 0.26 |
| 6206.TW | Flytech Technology Co Ltd | 0 | 1.05 | 1.04 |
| 8114.TW | Posiflex Technology Inc | 0.24 | 0.66 | 0.55 |
| 8499.TW | Top Bright Holding Co Ltd | 0.03 | 0.45 | 0.44 |
| Low | High | |
| Unlevered beta | 0.44 | 0.57 |
| Relevered beta | 0.48 | 0.61 |
| Adjusted relevered beta | 0.65 | 0.74 |
4576.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 4576.TW:
cost_of_equity (7.05%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.65) + 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.