6257.TW WACC - Weighted Average Cost of Capital
The WACC of Sigurd Microelectronics Corp (6257.TW) is 8.2%.
| Range | Selected | |
| Cost of equity | 8.5% - 11.1% | 9.8% |
| Tax rate | 17.0% - 17.8% | 17.4% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.2% - 9.2% | 8.2% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.08 | 1.15 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.5% | 11.1% |
| Tax rate | 17.0% | 17.8% |
| Debt/Equity ratio | 0.33 | 0.33 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.2% | 9.2% |
| Selected WACC | 8.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6257.TW | Sigurd Microelectronics Corp | 0.33 | 1.06 | 0.83 |
| 2388.TW | VIA Technologies Inc | 0.05 | 1.32 | 1.27 |
| 2401.TW | Sunplus Technology Co Ltd | 0.11 | 1.14 | 1.05 |
| 2481.TW | Pan Jit International Inc | 0.5 | 1.44 | 1.02 |
| 3006.TW | Elite Semiconductor Memory Technology Inc | 0.25 | 1.12 | 0.92 |
| 3545.TW | FocalTech Systems Co Ltd | 0.07 | 0.97 | 0.92 |
| 6202.TW | Holtek Semiconductor Inc | 0.11 | 1.43 | 1.31 |
| 8016.TW | Sitronix Technology Corp | 0.01 | 0.66 | 0.65 |
| 8081.TW | Global Mixed-Mode Technology Inc | 0 | 0.74 | 0.74 |
| 8131.TW | Formosa Advanced Technologies Co Ltd | 0.04 | 0.66 | 0.63 |
| Low | High | |
| Unlevered beta | 0.88 | 0.96 |
| Relevered beta | 1.12 | 1.22 |
| Adjusted relevered beta | 1.08 | 1.15 |
6257.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 6257.TW:
cost_of_equity (9.80%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.08) + 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.