8454.TW WACC - Weighted Average Cost of Capital
The WACC of Momo Com Inc (8454.TW) is 6.1%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.0% | 6.2% |
| Tax rate | 19.4% - 19.7% | 19.55% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.3% - 6.9% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.56 | 0.57 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.0% |
| Tax rate | 19.4% | 19.7% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.3% | 6.9% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8454.TW | Momo Com Inc | 0.04 | 0.37 | 0.35 |
| 002280.SZ | Hangzhou Liaison Interactive Information Technology Co Ltd | 5.19 | 1.82 | 0.35 |
| 035080.KQ | Interpark Corp | 1.19 | 0.69 | 0.35 |
| 035760.KQ | CJ ENM Co Ltd | 2.14 | -0.1 | -0.04 |
| 057050.KS | Hyundai Home Shopping Network Corp | 0.61 | 0.27 | 0.18 |
| 1896.HK | Maoyan Entertainment | 0.06 | 1.15 | 1.1 |
| 2614.TW | Eastern Media International Corp | 2.34 | 0.25 | 0.09 |
| 3092.T | ZOZO Inc | 0.01 | 0.51 | 0.5 |
| 4385.T | Mercari Inc | 0.49 | 0.79 | 0.56 |
| 9997.T | Belluna Co Ltd | 1.51 | 0.71 | 0.32 |
| Low | High | |
| Unlevered beta | 0.34 | 0.35 |
| Relevered beta | 0.34 | 0.36 |
| Adjusted relevered beta | 0.56 | 0.57 |
8454.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 8454.TW:
cost_of_equity (6.20%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.56) + 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.