2124.T
Jac Recruitment Co Ltd
Price:  
1,041 
JPY
Volume:  
255,000
Japan | Professional Services

2124.T WACC - Weighted Average Cost of Capital

The WACC of Jac Recruitment Co Ltd (2124.T) is 6.1%.

The Cost of Equity of Jac Recruitment Co Ltd (2124.T) is 9.35%.
The Cost of Debt of Jac Recruitment Co Ltd (2124.T) is 4.25%.

RangeSelected
Cost of equity8.0% - 10.7%9.35%
Tax rate31.0% - 32.8%31.9%
Cost of debt4.0% - 4.5%4.25%
WACC5.4% - 6.9%6.1%
WACC

2124.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta1.081.17
Additional risk adjustments0.0%0.5%
Cost of equity8.0%10.7%
Tax rate31.0%32.8%
Debt/Equity ratio
11
Cost of debt4.0%4.5%
After-tax WACC5.4%6.9%
Selected WACC6.1%

2124.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 2124.T:

cost_of_equity (9.35%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.08) + 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.