8482.TW
Shane Global Holding Inc
Price:  
64.4 
TWD
Volume:  
55,330
Taiwan, Province of China | Household Durables

8482.TW WACC - Weighted Average Cost of Capital

The WACC of Shane Global Holding Inc (8482.TW) is 8.3%.

The Cost of Equity of Shane Global Holding Inc (8482.TW) is 8.3%.
The Cost of Debt of Shane Global Holding Inc (8482.TW) is 5.05%.

RangeSelected
Cost of equity7.2% - 9.4%8.3%
Tax rate12.3% - 12.5%12.4%
Cost of debt4.0% - 6.1%5.05%
WACC7.2% - 9.4%8.3%
WACC

8482.TW WACC calculation

CategoryLowHigh
Long-term bond rate2.0%2.5%
Equity market risk premium6.0%7.0%
Adjusted beta0.870.91
Additional risk adjustments0.0%0.5%
Cost of equity7.2%9.4%
Tax rate12.3%12.5%
Debt/Equity ratio
0.010.01
Cost of debt4.0%6.1%
After-tax WACC7.2%9.4%
Selected WACC8.3%

8482.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 8482.TW:

cost_of_equity (8.30%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.87) + 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.