8404.TW WACC - Weighted Average Cost of Capital
The WACC of Paiho Shih Holdings Corp (8404.TW) is 7.0%.
| Range | Selected | |
| Cost of equity | 8.9% - 12.9% | 10.9% |
| Tax rate | 34.8% - 37.2% | 36% |
| Cost of debt | 4.0% - 7.3% | 5.65% |
| WACC | 5.5% - 8.4% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.15 | 1.42 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.9% | 12.9% |
| Tax rate | 34.8% | 37.2% |
| Debt/Equity ratio | 1.17 | 1.17 |
| Cost of debt | 4.0% | 7.3% |
| After-tax WACC | 5.5% | 8.4% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8404.TW | Paiho Shih Holdings Corp | 1.17 | 0.92 | 0.53 |
| 002098.SZ | Fujian SBS Zipper Science and Technology Co Ltd | 0.08 | 1.13 | 1.08 |
| 002687.SZ | Zhejiang Giuseppe Garment Co Ltd | 0.04 | 1.21 | 1.18 |
| 002731.SZ | Shenyang Cuihua Gold and Silver Jewelry Co Ltd | 0.86 | 1.11 | 0.72 |
| 003016.SZ | Xin Hee Co Ltd | 0.1 | 0.92 | 0.86 |
| 600146.SS | Shangying Global Co Ltd | 2.51 | 1.4 | 0.54 |
| 603196.SS | Ribo Fashion Group Co Ltd | 0.05 | 1.93 | 1.87 |
| 603555.SS | Guirenniao Co Ltd | 0.79 | 1.03 | 0.68 |
| 603558.SS | Zhejiang Jasan Holding Group Co Ltd | 0.33 | 0.51 | 0.42 |
| 603665.SS | ZheJiang KangLongDa Special Protection Technology Co Ltd | 0.44 | 1.34 | 1.05 |
| Low | High | |
| Unlevered beta | 0.7 | 0.94 |
| Relevered beta | 1.22 | 1.63 |
| Adjusted relevered beta | 1.15 | 1.42 |
8404.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 8404.TW:
cost_of_equity (10.90%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.15) + 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.