8467.TW WACC - Weighted Average Cost of Capital
The WACC of Bonny Worldwide Ltd (8467.TW) is 7.1%.
| Range | Selected | |
| Cost of equity | 6.3% - 8.7% | 7.5% |
| Tax rate | 16.5% - 20.5% | 18.5% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.0% - 8.2% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.72 | 0.81 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 8.7% |
| Tax rate | 16.5% | 20.5% |
| Debt/Equity ratio | 0.11 | 0.11 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.0% | 8.2% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8467.TW | Bonny Worldwide Ltd | 0.11 | 0.91 | 0.83 |
| 1526.TW | Sun Race Sturmey-Archer Inc | 0.64 | 0.78 | 0.51 |
| 1598.TW | Dyaco International Inc | 1.01 | 0.68 | 0.37 |
| 1736.TW | Johnson Health Tech Co Ltd | 0.38 | 0.72 | 0.55 |
| 4536.TW | Topkey Corp | 0.22 | 0.81 | 0.69 |
| 6670.TW | FuSheng Precision Co Ltd | 0.04 | 0.67 | 0.65 |
| 8033.TW | Thunder Tiger Corp | 0.1 | 0.76 | 0.7 |
| 8478.TW | Alexander Marine Co Ltd | 0.35 | 1.08 | 0.84 |
| 9914.TW | Merida Industry Co Ltd | 0.23 | 0.46 | 0.39 |
| 9921.TW | Giant Manufacturing Co Ltd | 0.48 | 0.53 | 0.37 |
| Low | High | |
| Unlevered beta | 0.53 | 0.66 |
| Relevered beta | 0.58 | 0.72 |
| Adjusted relevered beta | 0.72 | 0.81 |
8467.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 8467.TW:
cost_of_equity (7.50%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.72) + 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.