APWC WACC - Weighted Average Cost of Capital
The WACC of Asia Pacific Wire & Cable Corporation Ltd (APWC) is 5.7%.
| Range | Selected | |
| Cost of equity | 6.1% - 10.5% | 8.3% |
| Tax rate | 32.9% - 35.7% | 34.3% |
| Cost of debt | 4.2% - 4.9% | 4.55% |
| WACC | 4.5% - 7.0% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.48 | 1.01 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 10.5% |
| Tax rate | 32.9% | 35.7% |
| Debt/Equity ratio | 0.93 | 0.93 |
| Cost of debt | 4.2% | 4.9% |
| After-tax WACC | 4.5% | 7.0% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| APWC | Asia Pacific Wire & Cable Corporation Ltd | 0.93 | 0.17 | 0.1 |
| AMOT | Allied Motion Technologies Inc | 0.43 | 1.71 | 1.34 |
| CAPC | Capstone Companies Inc | 0.19 | -0.43 | -0.38 |
| EGT.V | Eguana Technologies Inc | 9.34 | -0.67 | -0.09 |
| LYTS | LSI Industries Inc | 0.12 | 1.29 | 1.2 |
| OESX | Orion Energy Systems Inc | 0.45 | 0.71 | 0.55 |
| PLPC | Preformed Line Products Co | 0.04 | 0.76 | 0.74 |
| RGSEQ | Real Goods Solar Inc | 0.03 | 1.08 | 1.05 |
| SVT | Servotronics Inc | 0.08 | 0.17 | 0.16 |
| THR | Thermon Group Holdings Inc | 0.18 | 1.19 | 1.07 |
| Low | High | |
| Unlevered beta | 0.4 | 0.86 |
| Relevered beta | 0.22 | 1.01 |
| Adjusted relevered beta | 0.48 | 1.01 |
APWC'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 APWC:
cost_of_equity (8.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.48) + 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.