1730.T WACC - Weighted Average Cost of Capital

The WACC of Aso Foam Crete Co Ltd (1730.T) is 5.2%.

The Cost of Equity of Aso Foam Crete Co Ltd (1730.T) is 5.65%.

The Cost of Debt of Aso Foam Crete Co Ltd (1730.T) is 5.50%.

	Range	Selected
Cost of equity	4.40% - 6.90%	5.65%
Tax rate	25.80% - 29.90%	27.85%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.0% - 6.3%	5.2%

WACC

1730.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.5	0.63

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.40%	6.90%

Tax rate	25.80%	29.90%
Debt/Equity ratio	0.41	0.41
Cost of debt	4.00%	7.00%

After-tax WACC	4.0%	6.3%


Selected WACC	5.2%

1730.T'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 1730.T:

cost_of_equity (5.65%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.5) + 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.