8443.TW WACC - Weighted Average Cost of Capital
The WACC of Shui-Mu International Co Ltd (8443.TW) is 6.6%.
| Range | Selected | |
| Cost of equity | 6.0% - 8.8% | 7.4% |
| Tax rate | 4.3% - 9.9% | 7.1% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.3% - 7.9% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.67 | 0.82 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 8.8% |
| Tax rate | 4.3% | 9.9% |
| Debt/Equity ratio | 0.52 | 0.52 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.3% | 7.9% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8443.TW | Shui-Mu International Co Ltd | 0.52 | 0.12 | 0.08 |
| 1441.TW | Tah Tong Textile Co Ltd | 0.99 | 1.03 | 0.54 |
| 1445.TW | Universal Textile Co Ltd | 0.06 | 0.5 | 0.47 |
| 1454.TW | Taiwan Taffeta Fabric Co Ltd | 0.08 | 0.19 | 0.18 |
| 4807.TW | Regal Holding Co Ltd | 0.89 | 1.13 | 0.62 |
| 5906.TW | Tainan Enterprise (Cayman) Co Ltd | 0.51 | 0.41 | 0.28 |
| 9802.TW | Fulgent Sun International (Holding) Co Ltd | 0.16 | 1.14 | 0.99 |
| 9904.TW | Pou Chen Corp | 0.82 | 0.66 | 0.38 |
| 9910.TW | Feng Tay Enterprises Co Ltd | 0.06 | 0.88 | 0.83 |
| BATA.JK | Sepatu Bata Tbk PT | 2.39 | 0.09 | 0.03 |
| Low | High | |
| Unlevered beta | 0.34 | 0.5 |
| Relevered beta | 0.51 | 0.73 |
| Adjusted relevered beta | 0.67 | 0.82 |
8443.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 8443.TW:
cost_of_equity (7.40%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.67) + 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.