6133.TW
Golden Bridge Electech Inc
Price:  
14.75 
TWD
Volume:  
176,922
Taiwan, Province of China | Electrical Equipment

6133.TW WACC - Weighted Average Cost of Capital

The WACC of Golden Bridge Electech Inc (6133.TW) is 7.4%.

The Cost of Equity of Golden Bridge Electech Inc (6133.TW) is 8.7%.
The Cost of Debt of Golden Bridge Electech Inc (6133.TW) is 4.25%.

RangeSelected
Cost of equity7.4% - 10.0%8.7%
Tax rate14.0% - 23.1%18.55%
Cost of debt4.0% - 4.5%4.25%
WACC6.4% - 8.3%7.4%
WACC

6133.TW WACC calculation

CategoryLowHigh
Long-term bond rate2.0%2.5%
Equity market risk premium6.0%7.0%
Adjusted beta0.90.99
Additional risk adjustments0.0%0.5%
Cost of equity7.4%10.0%
Tax rate14.0%23.1%
Debt/Equity ratio
0.330.33
Cost of debt4.0%4.5%
After-tax WACC6.4%8.3%
Selected WACC7.4%

6133.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 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.