6491.TW WACC - Weighted Average Cost of Capital
The WACC of Pegavision Corp (6491.TW) is 8.4%.
| Range | Selected | |
| Cost of equity | 7.2% - 10.0% | 8.6% |
| Tax rate | 15.1% - 15.2% | 15.15% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.0% - 9.7% | 8.4% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.87 | 1 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.2% | 10.0% |
| Tax rate | 15.1% | 15.2% |
| Debt/Equity ratio | 0.06 | 0.06 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.0% | 9.7% |
| Selected WACC | 8.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6491.TW | Pegavision Corp | 0.06 | 0.6 | 0.57 |
| 1501.HK | Shanghai Kindly Medical Instruments Co Ltd | 0.06 | -0.05 | -0.05 |
| 1786.TW | SciVision Biotech Inc | 0.03 | 0.95 | 0.93 |
| 300453.SZ | Jiangxi Sanxin Medtec Co Ltd | 0.08 | 1.06 | 1 |
| 300642.SZ | Tellgen Corp | 0.04 | 1.3 | 1.26 |
| 4155.TW | OK Biotech Co Ltd | 0.27 | 0.5 | 0.41 |
| 546.SI | Medtecs International Corporation Ltd | 0.42 | 0.83 | 0.61 |
| 603976.SS | ChongQing Zhengchuan Pharmaceutical Packaging Co Ltd | 0.22 | 1.03 | 0.87 |
| 605369.SS | Zhejiang Gongdong Medical Technology Co Ltd | 0.01 | 1.13 | 1.13 |
| POLYMED.NS | Poly Medicure Ltd | 0.01 | 1.12 | 1.11 |
| Low | High | |
| Unlevered beta | 0.77 | 0.96 |
| Relevered beta | 0.81 | 1 |
| Adjusted relevered beta | 0.87 | 1 |
6491.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 6491.TW:
cost_of_equity (8.60%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.87) + 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.