1783.T WACC - Weighted Average Cost of Capital

The WACC of Asia Gate Holdings Co Ltd (1783.T) is 5.7%.

The Cost of Equity of Asia Gate Holdings Co Ltd (1783.T) is 5.55%.

The Cost of Debt of Asia Gate Holdings Co Ltd (1783.T) is 8.80%.

	Range	Selected
Cost of equity	4.40% - 6.70%	5.55%
Tax rate	21.00% - 32.00%	26.50%
Cost of debt	4.40% - 13.20%	8.80%
WACC	4.2% - 7.1%	5.7%

WACC

1783.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.48	0.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.40%	6.70%

Tax rate	21.00%	32.00%
Debt/Equity ratio	0.23	0.23
Cost of debt	4.40%	13.20%

After-tax WACC	4.2%	7.1%


Selected WACC	5.7%

1783.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 1783.T:

cost_of_equity (5.55%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * 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.