The WACC of Golden Bridge Electech Inc (6133.TW) is 7.4%.
Range | Selected | |
Cost of equity | 7.4% - 10.0% | 8.7% |
Tax rate | 14.0% - 23.1% | 18.55% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 6.4% - 8.3% | 7.4% |
Category | Low | High |
Long-term bond rate | 2.0% | 2.5% |
Equity market risk premium | 6.0% | 7.0% |
Adjusted beta | 0.9 | 0.99 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.4% | 10.0% |
Tax rate | 14.0% | 23.1% |
Debt/Equity ratio | 0.33 | 0.33 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 6.4% | 8.3% |
Selected WACC | 7.4% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
6133.TW | Golden Bridge Electech Inc | 0.33 | 1.29 | 1.01 |
1529.TW | Klingon Aerospace Inc | 0.31 | 1.02 | 0.81 |
2483.TW | Excel Cell Electronic Co Ltd | 0.51 | 0.69 | 0.48 |
3002.TW | Ahoku Electronic Co | 0.02 | 0.71 | 0.7 |
3043.TW | Powercom Co Ltd | 0.35 | 0.97 | 0.75 |
3296.TW | Powertech Industrial Co Ltd | 0.23 | 0.74 | 0.62 |
3308.TW | Bestec Power Electronics Co Ltd | 0.92 | 0.71 | 0.4 |
3536.TW | Sintronic Technology Inc | 2.1 | 0.89 | 0.32 |
4545.TW | Min Aik Precision Industrial Co Ltd | 0.19 | 1.62 | 1.4 |
6558.TW | SYNergy ScienTech Corp | 0.01 | 1.22 | 1.21 |
Low | High | |
Unlevered beta | 0.67 | 0.77 |
Relevered beta | 0.85 | 0.99 |
Adjusted relevered beta | 0.9 | 0.99 |
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 6133.TW:
cost_of_equity (8.70%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.9) + 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.