6412.TW
Chicony Power Technology Co Ltd
Price:  
116.00 
TWD
Volume:  
1,796,265.00
Taiwan, Province of China | Electrical Equipment
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6412.TW WACC - Weighted Average Cost of Capital

The WACC of Chicony Power Technology Co Ltd (6412.TW) is 7.6%.

The Cost of Equity of Chicony Power Technology Co Ltd (6412.TW) is 7.80%.
The Cost of Debt of Chicony Power Technology Co Ltd (6412.TW) is 6.15%.

Range Selected
Cost of equity 6.40% - 9.20% 7.80%
Tax rate 20.60% - 21.00% 20.80%
Cost of debt 4.00% - 8.30% 6.15%
WACC 6.2% - 9.1% 7.6%
WACC

6412.TW WACC calculation

Category Low High
Long-term bond rate 2.0% 2.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.72 0.89
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.40% 9.20%
Tax rate 20.60% 21.00%
Debt/Equity ratio 0.06 0.06
Cost of debt 4.00% 8.30%
After-tax WACC 6.2% 9.1%
Selected WACC 7.6%

6412.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 6412.TW:

cost_of_equity (7.80%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.72) + 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.