6405.TW WACC - Weighted Average Cost of Capital
The WACC of Onano Industrial Corp (6405.TW) is 7.5%.
| Range | Selected | |
| Cost of equity | 8.0% - 11.0% | 9.5% |
| Tax rate | 17.5% - 28.3% | 22.9% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 6.9% - 8.0% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1 | 1.14 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.0% | 11.0% |
| Tax rate | 17.5% | 28.3% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 6.9% | 8.0% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6405.TW | Onano Industrial Corp | 0.88 | 0.94 | 0.57 |
| 2434.TW | Mospec Semiconductor Corp | 0.19 | 0.34 | 0.3 |
| 2466.TW | Cosmo Electronics Corp | 0.12 | 0.22 | 0.2 |
| 2491.TW | Fortune Oriental Co Ltd | 0.05 | 0.75 | 0.73 |
| 3383.TW | Genesis Photonics Inc | 19.77 | 0.81 | 0.05 |
| 3686.TW | Danen Technology Corp | 0.01 | 0.7 | 0.69 |
| 6243.TW | Ene Technology Inc | 0.17 | 1.51 | 1.34 |
| 6289.TW | Arima Optoelectronics Corp | 0.83 | 1.2 | 0.74 |
| 6477.TW | Anji Technology Co Ltd | 1.11 | 0.93 | 0.51 |
| 6698.TW | FineMat Applied Materials Co Ltd | 0.38 | 0.89 | 0.69 |
| 8104.TW | RiTdisplay Corp | 0.77 | 0.98 | 0.62 |
| Low | High | |
| Unlevered beta | 0.57 | 0.69 |
| Relevered beta | 1 | 1.21 |
| Adjusted relevered beta | 1 | 1.14 |
6405.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 6405.TW:
cost_of_equity (9.50%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (1) + 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.