8374.TW
Ace Pillar Co Ltd
Price:  
93.5 
TWD
Volume:  
685,118
Taiwan, Province of China | Trading Companies & Distributors

8374.TW WACC - Weighted Average Cost of Capital

The WACC of Ace Pillar Co Ltd (8374.TW) is 6.8%.

The Cost of Equity of Ace Pillar Co Ltd (8374.TW) is 7.2%.
The Cost of Debt of Ace Pillar Co Ltd (8374.TW) is 4.4%.

RangeSelected
Cost of equity5.9% - 8.5%7.2%
Tax rate23.0% - 24.0%23.5%
Cost of debt4.0% - 4.8%4.4%
WACC5.6% - 8.0%6.8%
WACC

8374.TW WACC calculation

CategoryLowHigh
Long-term bond rate2.0%2.5%
Equity market risk premium6.0%7.0%
Adjusted beta0.650.78
Additional risk adjustments0.0%0.5%
Cost of equity5.9%8.5%
Tax rate23.0%24.0%
Debt/Equity ratio
0.10.1
Cost of debt4.0%4.8%
After-tax WACC5.6%8.0%
Selected WACC6.8%

8374.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 8374.TW:

cost_of_equity (7.20%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.65) + 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.