6184.TW
Dafeng TV Ltd
Price:  
53.60 
TWD
Volume:  
55,817.00
Taiwan, Province of China | Media
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6184.TW WACC - Weighted Average Cost of Capital

The WACC of Dafeng TV Ltd (6184.TW) is 6.8%.

The Cost of Equity of Dafeng TV Ltd (6184.TW) is 7.50%.
The Cost of Debt of Dafeng TV Ltd (6184.TW) is 4.25%.

Range Selected
Cost of equity 5.00% - 10.00% 7.50%
Tax rate 18.00% - 18.80% 18.40%
Cost of debt 4.00% - 4.50% 4.25%
WACC 4.7% - 8.9% 6.8%
WACC

6184.TW WACC calculation

Category Low High
Long-term bond rate 2.0% 2.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.5 1
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.00% 10.00%
Tax rate 18.00% 18.80%
Debt/Equity ratio 0.21 0.21
Cost of debt 4.00% 4.50%
After-tax WACC 4.7% 8.9%
Selected WACC 6.8%

6184.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 6184.TW:

cost_of_equity (7.50%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.5) + 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.