6141.TW WACC - Weighted Average Cost of Capital

The WACC of Plotech Co Ltd (6141.TW) is 6.8%.

The Cost of Equity of Plotech Co Ltd (6141.TW) is 11.85%.

The Cost of Debt of Plotech Co Ltd (6141.TW) is 5.50%.

	Range	Selected
Cost of equity	9.80% - 13.90%	11.85%
Tax rate	11.80% - 14.80%	13.30%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.3% - 8.2%	6.8%

WACC

6141.TW WACC calculation

Category	Low	High

Long-term bond rate	2.0%	2.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.29	1.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	13.90%

Tax rate	11.80%	14.80%
Debt/Equity ratio	2.52	2.52
Cost of debt	4.00%	7.00%

After-tax WACC	5.3%	8.2%


Selected WACC	6.8%

6141.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 6141.TW:

cost_of_equity (11.85%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.29) + 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.