The WACC of Ace Pillar Co Ltd (8374.TW) is 6.8%.
Range | Selected | |
Cost of equity | 5.9% - 8.5% | 7.2% |
Tax rate | 23.0% - 24.0% | 23.5% |
Cost of debt | 4.0% - 4.8% | 4.4% |
WACC | 5.6% - 8.0% | 6.8% |
Category | Low | High |
Long-term bond rate | 2.0% | 2.5% |
Equity market risk premium | 6.0% | 7.0% |
Adjusted beta | 0.65 | 0.78 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.9% | 8.5% |
Tax rate | 23.0% | 24.0% |
Debt/Equity ratio | 0.1 | 0.1 |
Cost of debt | 4.0% | 4.8% |
After-tax WACC | 5.6% | 8.0% |
Selected WACC | 6.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
8374.TW | Ace Pillar Co Ltd | 0.1 | 0.99 | 0.92 |
1725.TW | Yuan Jen Enterprises Co Ltd | 0.36 | 0.95 | 0.75 |
2693.T | YKT Corp | 0.79 | 0.73 | 0.46 |
6192.TW | Lumax International Corp Ltd | 0 | 0.62 | 0.62 |
9972.T | Altech Co Ltd | 1.88 | 0.53 | 0.22 |
CSS.BK | Communication & System Solution PCL | 0.01 | 0.91 | 0.91 |
GC.BK | Global Connections PCL | 0.66 | 0.22 | 0.15 |
LIONPSIM.KL | Lion Posim Bhd | 0.44 | 0.49 | 0.37 |
PANSAR.KL | Pansar Bhd | 0.92 | 0.7 | 0.41 |
SGER.JK | Sumber Global Energy Tbk PT | 0.24 | 0.73 | 0.62 |
Low | High | |
Unlevered beta | 0.44 | 0.62 |
Relevered beta | 0.48 | 0.67 |
Adjusted relevered beta | 0.65 | 0.78 |
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.