2504.TW WACC - Weighted Average Cost of Capital

The WACC of Goldsun Building Materials Co Ltd (2504.TW) is 6.3%.

The Cost of Equity of Goldsun Building Materials Co Ltd (2504.TW) is 6.90%.

The Cost of Debt of Goldsun Building Materials Co Ltd (2504.TW) is 5.50%.

	Range	Selected
Cost of equity	4.60% - 9.20%	6.90%
Tax rate	18.70% - 19.90%	19.30%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.3% - 8.3%	6.3%

WACC

2504.TW WACC calculation

Category	Low	High

Long-term bond rate	2.0%	2.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.43	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.60%	9.20%

Tax rate	18.70%	19.90%
Debt/Equity ratio	0.33	0.33
Cost of debt	4.00%	7.00%

After-tax WACC	4.3%	8.3%


Selected WACC	6.3%

2504.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 2504.TW:

cost_of_equity (6.90%) = risk_free_rate (2.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.43) + 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.