4912.TW WACC - Weighted Average Cost of Capital
The WACC of Lemtech Holdings Co Ltd (4912.TW) is 8.4%.
| Range | Selected | |
| Cost of equity | 9.2% - 12.0% | 10.6% |
| Tax rate | 19.0% - 22.0% | 20.5% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.4% - 9.4% | 8.4% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.19 | 1.28 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.2% | 12.0% |
| Tax rate | 19.0% | 22.0% |
| Debt/Equity ratio | 0.43 | 0.43 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.4% | 9.4% |
| Selected WACC | 8.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 4912.TW | Lemtech Holdings Co Ltd | 0.43 | 1.71 | 1.27 |
| 002122.SZ | Tianma Bearing Group Co Ltd | 0.03 | 1.8 | 1.75 |
| 002272.SZ | Sichuan Crun Co Ltd | 0.2 | 1.5 | 1.29 |
| 002535.SZ | Linzhou Heavy Machinery Group Co Ltd | 0.73 | 1.29 | 0.81 |
| 002598.SZ | Shandong Zhangqiu Blower Co Ltd | 0.29 | 1.23 | 1 |
| 002997.SZ | Rayhoo Motor Dies Co Ltd | 0.1 | 0.98 | 0.91 |
| 300195.SZ | Masterwork Group Co Ltd | 0.75 | 1.49 | 0.93 |
| 600860.SS | Beijing Jingcheng Machinery Electric Co Ltd | 0.11 | 1.23 | 1.13 |
| 603095.SS | Zhejiang Yuejian Intelligent Equipment Co Ltd | 0.09 | 1.04 | 0.97 |
| 603339.SS | Square Technology Group Co Ltd | 0 | 0.81 | 0.81 |
| Low | High | |
| Unlevered beta | 0.95 | 1.05 |
| Relevered beta | 1.28 | 1.42 |
| Adjusted relevered beta | 1.19 | 1.28 |
4912.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 4912.TW:
cost_of_equity (10.60%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.19) + 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.