4927.TW WACC - Weighted Average Cost of Capital
The WACC of Apex International Co Ltd (4927.TW) is 7.5%.
| Range | Selected | |
| Cost of equity | 9.5% - 13.6% | 11.55% |
| Tax rate | 2.0% - 3.1% | 2.55% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.9% - 9.2% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.24 | 1.52 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.5% | 13.6% |
| Tax rate | 2.0% | 3.1% |
| Debt/Equity ratio | 1.83 | 1.83 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.9% | 9.2% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 4927.TW | Apex International Co Ltd | 1.83 | 1.38 | 0.5 |
| 1582.TW | Syncmold Enterprise Corp | 0.21 | 1.06 | 0.88 |
| 2472.TW | Lelon Electronics Corp | 0.19 | 1.24 | 1.05 |
| 3026.TW | Holy Stone Enterprise Co Ltd | 0.26 | 0.49 | 0.4 |
| 3042.TW | TXC Corp | 0.07 | 0.52 | 0.48 |
| 4943.TW | Concraft Holding Co Ltd | 0.85 | 0.32 | 0.17 |
| 6230.TW | Nidec Chaun Choung Technology Corp | 0.03 | 1.6 | 1.55 |
| 6251.TW | Dynamic Electronics Co Ltd | 0.91 | 1.04 | 0.55 |
| 8039.TW | Taiflex Scientific Co Ltd | 0.1 | 0.85 | 0.77 |
| 8215.TW | BenQ Materials Corp | 1.16 | 0.87 | 0.41 |
| Low | High | |
| Unlevered beta | 0.49 | 0.64 |
| Relevered beta | 1.36 | 1.78 |
| Adjusted relevered beta | 1.24 | 1.52 |
4927.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 4927.TW:
cost_of_equity (11.55%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.24) + 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.