8110.TW
Walton Advanced Engineering Inc
Price:  
12.75 
TWD
Volume:  
491,935.00
Taiwan, Province of China | Semiconductors & Semiconductor Equipment
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8110.TW WACC - Weighted Average Cost of Capital

The WACC of Walton Advanced Engineering Inc (8110.TW) is 7.3%.

The Cost of Equity of Walton Advanced Engineering Inc (8110.TW) is 9.70%.
The Cost of Debt of Walton Advanced Engineering Inc (8110.TW) is 5.50%.

Range Selected
Cost of equity 8.40% - 11.00% 9.70%
Tax rate 35.50% - 48.70% 42.10%
Cost of debt 4.00% - 7.00% 5.50%
WACC 6.3% - 8.3% 7.3%
WACC

8110.TW WACC calculation

Category Low High
Long-term bond rate 2.0% 2.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 1.07 1.15
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.40% 11.00%
Tax rate 35.50% 48.70%
Debt/Equity ratio 0.59 0.59
Cost of debt 4.00% 7.00%
After-tax WACC 6.3% 8.3%
Selected WACC 7.3%

8110.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 8110.TW:

cost_of_equity (9.70%) = 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.