9912.TW WACC - Weighted Average Cost of Capital
The WACC of Associated Industries China Inc (9912.TW) is 6.3%.
| Range | Selected | |
| Cost of equity | 5.8% - 7.7% | 6.75% |
| Tax rate | 1.3% - 1.7% | 1.5% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.2% - 7.5% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.62 | 0.67 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 7.7% |
| Tax rate | 1.3% | 1.7% |
| Debt/Equity ratio | 0.44 | 0.44 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.2% | 7.5% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9912.TW | Associated Industries China Inc | 0.44 | 0.5 | 0.35 |
| 2364.TW | Twinhead International Corp | 0.16 | 1.14 | 0.99 |
| 2380.TW | Avision Inc | 1.1 | 0.46 | 0.22 |
| 2438.TW | Enlight Corp | 0.28 | 1.8 | 1.41 |
| 2443.TW | Lead Data Inc | 0.01 | -0.68 | -0.67 |
| 3050.TW | U-Tech Media Corp | 1 | 0.72 | 0.36 |
| 3494.TW | HiTi Digital Inc | 0.53 | 0.6 | 0.39 |
| 6172.TW | Billionton Systems Inc | 0.25 | 0.31 | 0.25 |
| 6277.TW | Aten International Co Ltd | 0.07 | 0.22 | 0.2 |
| 8101.TW | Arima Communications Corp | 0.15 | 0.39 | 0.34 |
| Low | High | |
| Unlevered beta | 0.31 | 0.35 |
| Relevered beta | 0.43 | 0.51 |
| Adjusted relevered beta | 0.62 | 0.67 |
9912.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 9912.TW:
cost_of_equity (6.75%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.62) + 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.