6669.TW
Wiwynn Corp
Price:  
2,455 
TWD
Volume:  
1,506,966
Taiwan, Province of China | Technology Hardware, Storage & Peripherals

6669.TW WACC - Weighted Average Cost of Capital

The WACC of Wiwynn Corp (6669.TW) is 7.6%.

The Cost of Equity of Wiwynn Corp (6669.TW) is 7.85%.
The Cost of Debt of Wiwynn Corp (6669.TW) is 4.95%.

RangeSelected
Cost of equity6.4% - 9.3%7.85%
Tax rate21.0% - 21.1%21.05%
Cost of debt4.0% - 5.9%4.95%
WACC6.1% - 9.0%7.6%
WACC

6669.TW WACC calculation

CategoryLowHigh
Long-term bond rate2.0%2.5%
Equity market risk premium6.0%7.0%
Adjusted beta0.720.9
Additional risk adjustments0.0%0.5%
Cost of equity6.4%9.3%
Tax rate21.0%21.1%
Debt/Equity ratio
0.070.07
Cost of debt4.0%5.9%
After-tax WACC6.1%9.0%
Selected WACC7.6%

6669.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 6669.TW:

cost_of_equity (7.85%) = 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.