The WACC of Shane Global Holding Inc (8482.TW) is 8.3%.
Range | Selected | |
Cost of equity | 7.2% - 9.4% | 8.3% |
Tax rate | 12.3% - 12.5% | 12.4% |
Cost of debt | 4.0% - 6.1% | 5.05% |
WACC | 7.2% - 9.4% | 8.3% |
Category | Low | High |
Long-term bond rate | 2.0% | 2.5% |
Equity market risk premium | 6.0% | 7.0% |
Adjusted beta | 0.87 | 0.91 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.2% | 9.4% |
Tax rate | 12.3% | 12.5% |
Debt/Equity ratio | 0.01 | 0.01 |
Cost of debt | 4.0% | 6.1% |
After-tax WACC | 7.2% | 9.4% |
Selected WACC | 8.3% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
8482.TW | Shane Global Holding Inc | 0.01 | 0.47 | 0.47 |
002718.SZ | Zhejiang Youpon Integrated Ceiling Co Ltd | 0.13 | 0.93 | 0.84 |
2340.SR | Al Abdullatif Industrial Investment Company SJSC | 0.23 | 1.32 | 1.1 |
2417.TW | AVerMedia Technologies Inc | 0.12 | 0.82 | 0.74 |
300749.SZ | Guangdong Topstrong Living Innovation and Integration Co Ltd | 0.19 | 1.32 | 1.13 |
603038.SS | Dongguan Huali industries Co Ltd | 0.11 | 0.98 | 0.89 |
603709.SS | Zoy Home Furnishing Co Ltd | 0.37 | 0.66 | 0.49 |
8427.TW | Keysheen (CAYMAN) Holdings Co Ltd | 0.17 | 1.18 | 1.03 |
8464.TW | Nien Made Enterprise Co Ltd | 0.01 | 0.84 | 0.83 |
9935.TW | Ching Feng Home Fashions Co Ltd | 0.77 | 0.98 | 0.59 |
Low | High | |
Unlevered beta | 0.8 | 0.86 |
Relevered beta | 0.81 | 0.87 |
Adjusted relevered beta | 0.87 | 0.91 |
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.