The WACC of Global Brands Manufacture Ltd (6191.TW) is 7.6%.
Range | Selected | |
Cost of equity | 7.7% - 10.1% | 8.9% |
Tax rate | 26.5% - 28.9% | 27.7% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 6.7% - 8.6% | 7.6% |
Category | Low | High |
Long-term bond rate | 2.0% | 2.5% |
Equity market risk premium | 6.0% | 7.0% |
Adjusted beta | 0.94 | 1.01 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.7% | 10.1% |
Tax rate | 26.5% | 28.9% |
Debt/Equity ratio | 0.27 | 0.27 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 6.7% | 8.6% |
Selected WACC | 7.6% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
6191.TW | Global Brands Manufacture Ltd | 0.27 | 1 | 0.83 |
2317.TW | Hon Hai Precision Industry Co Ltd | 0.43 | 0 | 0 |
2354.TW | Foxconn Technology Co Ltd | 0.11 | 1.21 | 1.12 |
2367.TW | Unitech Printed Circuit Board Corp | 0.38 | 1.1 | 0.87 |
2413.TW | Universal Microelectronics Co Ltd | 0.74 | 1.02 | 0.67 |
2439.TW | Merry Electronics Co Ltd | 0.13 | 0.82 | 0.75 |
3060.TW | Min Aik Technology Co Ltd | 0.21 | 1.27 | 1.11 |
3701.TW | FIC Global Inc | 0.15 | 1.11 | 1 |
6116.TW | Hannstar Display Corp | 0.31 | 0.95 | 0.78 |
8213.TW | Taiwan Printed Circuit Board Techvest Co Ltd | 0.83 | 0.63 | 0.4 |
Low | High | |
Unlevered beta | 0.77 | 0.85 |
Relevered beta | 0.91 | 1.01 |
Adjusted relevered beta | 0.94 | 1.01 |
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 6191.TW:
cost_of_equity (8.90%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.94) + 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.