8201.TW WACC - Weighted Average Cost of Capital
The WACC of Inventec Besta Co Ltd (8201.TW) is 6.4%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.3% | 6.35% |
| Tax rate | 0.1% - 2.6% | 1.35% |
| Cost of debt | 4.8% - 7.0% | 5.9% |
| WACC | 5.4% - 7.3% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.4 | 0.47 |
| Additional risk adjustments | 1.0% | 1.5% |
| Cost of equity | 5.4% | 7.3% |
| Tax rate | 0.1% | 2.6% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 4.8% | 7.0% |
| After-tax WACC | 5.4% | 7.3% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8201.TW | Inventec Besta Co Ltd | 0.03 | 0.78 | 0.75 |
| 017250.KQ | Interm Corp | 1.1 | 0.22 | 0.1 |
| 161570.KQ | The Midong Co Ltd | 1.02 | -0.39 | -0.19 |
| 225190.KQ | Samyang Optics Co Ltd | 0.09 | -0.44 | -0.4 |
| 2424.TW | Lung Hwa Electronics Co Ltd | 0.05 | 1.03 | 0.99 |
| 2488.TW | Hanpin Electron Co Ltd | 0.01 | 0.42 | 0.42 |
| 3024.TW | Action Electronics Co Ltd | 0.16 | 0.27 | 0.23 |
| 6201.TW | Ya Horng Electronic Co Ltd | 0.01 | 0.19 | 0.19 |
| 6225.TW | Aiptek International Inc | 0 | 0.09 | 0.09 |
| 8147.HK | Millennium Pacific Group Holdings Ltd | 0.29 | 0.01 | 0.01 |
| Low | High | |
| Unlevered beta | 0.1 | 0.21 |
| Relevered beta | 0.1 | 0.21 |
| Adjusted relevered beta | 0.4 | 0.47 |
8201.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 8201.TW:
cost_of_equity (6.35%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.4) + risk_adjustments (1.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.