The WACC of Silergy Corp (6415.TW) is 8.9%.
Range | Selected | |
Cost of equity | 7.8% - 10.2% | 9% |
Tax rate | 5.8% - 8.6% | 7.2% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 7.7% - 10.1% | 8.9% |
Category | Low | High |
Long-term bond rate | 2.0% | 2.5% |
Equity market risk premium | 6.0% | 7.0% |
Adjusted beta | 0.96 | 1.02 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.8% | 10.2% |
Tax rate | 5.8% | 8.6% |
Debt/Equity ratio | 0.01 | 0.01 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 7.7% | 10.1% |
Selected WACC | 8.9% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
6415.TW | Silergy Corp | 0.01 | 0.77 | 0.76 |
002049.SZ | Unigroup Guoxin Microelectronics Co Ltd | 0.04 | 1.62 | 1.56 |
002156.SZ | TongFu Microelectronics Co Ltd | 0.38 | 1.34 | 0.99 |
002185.SZ | Tianshui Huatian Technology Co Ltd | 0.43 | 1.32 | 0.94 |
002506.SZ | GCL System Integration Technology Co Ltd | 0.7 | 1.46 | 0.89 |
002610.SZ | Jiangsu Akcome Science & Technology Co Ltd | 3.38 | 1.75 | 0.43 |
601865.SS | Flat Glass Group Co Ltd | 0.44 | 1.27 | 0.9 |
603160.SS | Shenzhen Goodix Technology Co., Ltd. | 0.01 | 1.24 | 1.23 |
688099.SS | Amlogic Shanghai Co Ltd | 0 | 1.67 | 1.67 |
688256.SS | Cambricon Technologies Corp Ltd | 0 | 1.05 | 1.05 |
Low | High | |
Unlevered beta | 0.93 | 1.01 |
Relevered beta | 0.94 | 1.03 |
Adjusted relevered beta | 0.96 | 1.02 |
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.