4943.TW WACC - Weighted Average Cost of Capital
The WACC of Concraft Holding Co Ltd (4943.TW) is 7.9%.
| Range | Selected | |
| Cost of equity | 7.5% - 11.2% | 9.35% |
| Tax rate | 1.7% - 10.8% | 6.25% |
| Cost of debt | 6.0% - 7.0% | 6.5% |
| WACC | 6.8% - 9.1% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.91 | 1.16 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 11.2% |
| Tax rate | 1.7% | 10.8% |
| Debt/Equity ratio | 0.73 | 0.73 |
| Cost of debt | 6.0% | 7.0% |
| After-tax WACC | 6.8% | 9.1% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 4943.TW | Concraft Holding Co Ltd | 0.73 | 0.5 | 0.29 |
| 2375.TW | Kaimei Electronic Corp | 0.5 | 1.34 | 0.9 |
| 2472.TW | Lelon Electronics Corp | 0.19 | 1.19 | 1.01 |
| 2478.TW | TA-I Technology Co Ltd | 0.18 | 0.72 | 0.61 |
| 3049.TW | HannsTouch Solution Inc | 0.75 | 0.87 | 0.5 |
| 3504.TW | Young Optics Inc | 0.13 | 1.3 | 1.15 |
| 3530.TW | Silicon Optronics Inc | 0.01 | 1.37 | 1.36 |
| 3543.TW | Jochu Technology Co Ltd | 0.16 | 0.06 | 0.06 |
| 6108.TW | APCB Inc | 0.9 | 0.94 | 0.5 |
| 6141.TW | Plotech Co Ltd | 2.52 | 1.44 | 0.41 |
| Low | High | |
| Unlevered beta | 0.5 | 0.73 |
| Relevered beta | 0.87 | 1.24 |
| Adjusted relevered beta | 0.91 | 1.16 |
4943.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 4943.TW:
cost_of_equity (9.35%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.91) + 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.