6415.TW
Silergy Corp
Price:  
382 
TWD
Volume:  
1,085,380
China | Semiconductors & Semiconductor Equipment

6415.TW WACC - Weighted Average Cost of Capital

The WACC of Silergy Corp (6415.TW) is 8.9%.

The Cost of Equity of Silergy Corp (6415.TW) is 9%.
The Cost of Debt of Silergy Corp (6415.TW) is 4.25%.

RangeSelected
Cost of equity7.8% - 10.2%9%
Tax rate5.8% - 8.6%7.2%
Cost of debt4.0% - 4.5%4.25%
WACC7.7% - 10.1%8.9%
WACC

6415.TW WACC calculation

CategoryLowHigh
Long-term bond rate2.0%2.5%
Equity market risk premium6.0%7.0%
Adjusted beta0.961.02
Additional risk adjustments0.0%0.5%
Cost of equity7.8%10.2%
Tax rate5.8%8.6%
Debt/Equity ratio
0.010.01
Cost of debt4.0%4.5%
After-tax WACC7.7%10.1%
Selected WACC8.9%

6415.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 6415.TW:

cost_of_equity (9.00%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.96) + 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.