6269.TW WACC - Weighted Average Cost of Capital

The WACC of Flexium Interconnect Inc (6269.TW) is 6.8%.

The Cost of Equity of Flexium Interconnect Inc (6269.TW) is 7.35%.

The Cost of Debt of Flexium Interconnect Inc (6269.TW) is 5.50%.

	Range	Selected
Cost of equity	5.80% - 8.90%	7.35%
Tax rate	21.40% - 23.90%	22.65%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.3% - 8.3%	6.8%

WACC

6269.TW WACC calculation

Category	Low	High

Long-term bond rate	2.0%	2.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.63	0.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.80%	8.90%

Tax rate	21.40%	23.90%
Debt/Equity ratio	0.21	0.21
Cost of debt	4.00%	7.00%

After-tax WACC	5.3%	8.3%


Selected WACC	6.8%

6269.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 6269.TW:

cost_of_equity (7.35%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.63) + 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.