8081.TW
Global Mixed-Mode Technology Inc
Price:  
217.5 
TWD
Volume:  
488,544
Taiwan, Province of China | Semiconductors & Semiconductor Equipment

8081.TW WACC - Weighted Average Cost of Capital

The WACC of Global Mixed-Mode Technology Inc (8081.TW) is 9.6%.

The Cost of Equity of Global Mixed-Mode Technology Inc (8081.TW) is 9.65%.
The Cost of Debt of Global Mixed-Mode Technology Inc (8081.TW) is 4.25%.

RangeSelected
Cost of equity8.5% - 10.8%9.65%
Tax rate16.7% - 16.9%16.8%
Cost of debt4.0% - 4.5%4.25%
WACC8.4% - 10.7%9.6%
WACC

8081.TW WACC calculation

CategoryLowHigh
Long-term bond rate2.0%2.5%
Equity market risk premium6.0%7.0%
Adjusted beta1.071.11
Additional risk adjustments0.0%0.5%
Cost of equity8.5%10.8%
Tax rate16.7%16.9%
Debt/Equity ratio
00
Cost of debt4.0%4.5%
After-tax WACC8.4%10.7%
Selected WACC9.6%

8081.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 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.