5284.TW WACC - Weighted Average Cost of Capital
The WACC of JPP Holding Company Ltd (5284.TW) is 7.6%.
| Range | Selected | |
| Cost of equity | 7.0% - 10.1% | 8.55% |
| Tax rate | 16.6% - 22.6% | 19.6% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.3% - 8.8% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.83 | 1.01 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.0% | 10.1% |
| Tax rate | 16.6% | 22.6% |
| Debt/Equity ratio | 0.24 | 0.24 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.3% | 8.8% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 5284.TW | JPP Holding Company Ltd | 0.24 | 1.08 | 0.9 |
| 1471.TW | Solytech Enterprise Corp | 0 | 0.83 | 0.82 |
| 2415.TW | CX Technology Corp | 1.59 | 1.01 | 0.44 |
| 2429.TW | Abonmax Co Ltd | 0.04 | 1.77 | 1.71 |
| 3311.TW | Silitech Technology Corp | 0.03 | 0.01 | 0.01 |
| 3321.TW | Uniflex Technology Inc | 1.26 | 1.18 | 0.59 |
| 3593.TW | Logah Technology Corp | 0.76 | 1.69 | 1.05 |
| 6155.TW | King Core Electronics Inc | 0.28 | 0.79 | 0.64 |
| 6205.TW | Chant Sincere Co Ltd | 0.19 | 1.18 | 1.02 |
| 6226.TW | Para Light Electronics Co Ltd | 0.83 | 0.75 | 0.45 |
| Low | High | |
| Unlevered beta | 0.62 | 0.86 |
| Relevered beta | 0.75 | 1.01 |
| Adjusted relevered beta | 0.83 | 1.01 |
5284.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 5284.TW:
cost_of_equity (8.55%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.83) + 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.