8488.TW WACC - Weighted Average Cost of Capital
The WACC of Jiyuan Packaging Holdings Ltd (8488.TW) is 8.4%.
| Range | Selected | |
| Cost of equity | 5.5% - 7.3% | 6.4% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 4.7% - 22.0% | 13.35% |
| WACC | 4.6% - 12.2% | 8.4% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.58 | 0.61 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 7.3% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.7% | 22.0% |
| After-tax WACC | 4.6% | 12.2% |
| Selected WACC | 8.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8488.TW | Jiyuan Packaging Holdings Ltd | 1 | 0.6 | 0.34 |
| 004450.KS | Samhwa Crown & Closure Co Ltd | 0.88 | 0.39 | 0.23 |
| 004780.KQ | Daeryuk Can Co Ltd | 0.17 | 0.26 | 0.23 |
| 049830.KQ | Seung Il Corp | 0.12 | 0.55 | 0.51 |
| 1323.TW | Yonyu Plastics Co Ltd | 0.89 | 0.19 | 0.11 |
| 4248.T | Takemoto Yohki Co Ltd | 0.22 | 0.22 | 0.19 |
| 5905.T | Nihon Seikan KK | 1.59 | -0.03 | -0.02 |
| 5974.T | ChugokuKogyo Co Ltd | 1.2 | 0.44 | 0.23 |
| 8411.TW | Kingcan Holdings Ltd | 1.48 | 0.29 | 0.14 |
| TPAC.BK | Thai Plaspac PCL | 1.14 | 0.66 | 0.35 |
| Low | High | |
| Unlevered beta | 0.21 | 0.23 |
| Relevered beta | 0.37 | 0.42 |
| Adjusted relevered beta | 0.58 | 0.61 |
8488.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 8488.TW:
cost_of_equity (6.40%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.58) + 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.