9929.TW WACC - Weighted Average Cost of Capital
The WACC of Choice Development Inc (9929.TW) is 6.3%.
| Range | Selected | |
| Cost of equity | 5.7% - 8.0% | 6.85% |
| Tax rate | 1.5% - 5.5% | 3.5% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.1% - 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 | 0.71 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 8.0% |
| Tax rate | 1.5% | 5.5% |
| Debt/Equity ratio | 0.57 | 0.57 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.1% | 7.5% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9929.TW | Choice Development Inc | 0.57 | 0.14 | 0.09 |
| 1172.HK | Magnus Concordia Group Ltd | 1.7 | 0.75 | 0.28 |
| 1324.TW | Globe Industries Corp | 0.01 | 0.35 | 0.34 |
| 1540.HK | Left Field Printing Group Ltd | 0.05 | -0.16 | -0.16 |
| 1975.HK | Sun Hing Printing Holdings Ltd | 0.61 | 0.64 | 0.4 |
| 7946.T | Koyosha Inc | 0.45 | 0.38 | 0.27 |
| 8481.TW | Transart Graphics Co Ltd | 0.01 | 0.4 | 0.4 |
| INN.VN | Agriculture Printing and Packaging JSC | 0.12 | -0.01 | -0.01 |
| REPRO.NS | Repro India Ltd | 0.06 | 1.69 | 1.59 |
| SALEE.BK | Salee Industry PCL | 0.04 | 1.24 | 1.2 |
| Low | High | |
| Unlevered beta | 0.28 | 0.37 |
| Relevered beta | 0.43 | 0.57 |
| Adjusted relevered beta | 0.62 | 0.71 |
9929.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 9929.TW:
cost_of_equity (6.85%) = 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.