The WACC of Global Mixed-Mode Technology Inc (8081.TW) is 9.6%.
Range | Selected | |
Cost of equity | 8.5% - 10.8% | 9.65% |
Tax rate | 16.7% - 16.9% | 16.8% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 8.4% - 10.7% | 9.6% |
Category | Low | High |
Long-term bond rate | 2.0% | 2.5% |
Equity market risk premium | 6.0% | 7.0% |
Adjusted beta | 1.07 | 1.11 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.5% | 10.8% |
Tax rate | 16.7% | 16.9% |
Debt/Equity ratio | 0 | 0 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 8.4% | 10.7% |
Selected WACC | 9.6% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
8081.TW | Global Mixed-Mode Technology Inc | 0 | 0.76 | 0.76 |
2340.TW | Optotech Corp | 0.56 | 1.41 | 0.97 |
2401.TW | Sunplus Technology Co Ltd | 0.13 | 1.27 | 1.15 |
2481.TW | Pan Jit International Inc | 0.51 | 1.66 | 1.16 |
3014.TW | ITE Tech Inc | 0 | 1.04 | 1.04 |
3035.TW | Faraday Technology Corp | 0.01 | 1.16 | 1.16 |
3450.TW | Elite Advanced Laser Corp | 0.02 | 1.84 | 1.81 |
6202.TW | Holtek Semiconductor Inc | 0.12 | 1.46 | 1.33 |
6451.TW | Shunsin Technology Holdings Ltd | 0.48 | 1.92 | 1.38 |
8131.TW | Formosa Advanced Technologies Co Ltd | 0.04 | 0.72 | 0.7 |
Low | High | |
Unlevered beta | 1.1 | 1.16 |
Relevered beta | 1.1 | 1.16 |
Adjusted relevered beta | 1.07 | 1.11 |
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 8081.TW:
cost_of_equity (9.65%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.07) + 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.