8103.TW WACC - Weighted Average Cost of Capital
The WACC of CviLux Corp (8103.TW) is 7.2%.
| Range | Selected | |
| Cost of equity | 6.4% - 8.5% | 7.45% |
| Tax rate | 34.4% - 35.7% | 35.05% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.2% - 8.2% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.73 | 0.79 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 8.5% |
| Tax rate | 34.4% | 35.7% |
| Debt/Equity ratio | 0.07 | 0.07 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.2% | 8.2% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8103.TW | CviLux Corp | 0.07 | 1.23 | 1.18 |
| 1603.TW | China Wire & Cable Co Ltd | 0.26 | 0.75 | 0.64 |
| 1611.TW | China Electric Mfg Corp | 0.14 | 0.76 | 0.7 |
| 1615.TW | Dah San Electric Wire & Cable Corp | 0.12 | 0.41 | 0.38 |
| 1616.TW | Evertop Wire Cable Corp | 0.22 | 0.49 | 0.43 |
| 1617.TW | Jung Shing Wire Co Ltd | 0.3 | 0.8 | 0.67 |
| 1618.TW | Hold-Key Electric Wire & Cable Co Ltd | 0.12 | 1.26 | 1.17 |
| 2440.TW | Space Shuttle Hi-Tech Co Ltd | 0.45 | 0.59 | 0.46 |
| 3296.TW | Powertech Industrial Co Ltd | 0.23 | 0.74 | 0.64 |
| 3550.TW | Copartner Technology Corp | 1.81 | 0.97 | 0.45 |
| Low | High | |
| Unlevered beta | 0.57 | 0.65 |
| Relevered beta | 0.6 | 0.69 |
| Adjusted relevered beta | 0.73 | 0.79 |
8103.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 8103.TW:
cost_of_equity (7.45%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.73) + 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.