2124.T WACC - Weighted Average Cost of Capital
The WACC of Jac Recruitment Co Ltd (2124.T) is 6.1%.
| Range | Selected | |
| Cost of equity | 8.0% - 10.7% | 9.35% |
| Tax rate | 31.0% - 32.8% | 31.9% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.4% - 6.9% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.08 | 1.17 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.0% | 10.7% |
| Tax rate | 31.0% | 32.8% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.4% | 6.9% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2124.T | Jac Recruitment Co Ltd | 1.02 | 0.47 | 0.28 |
| 2471.T | S-Pool Inc | 0.86 | 0.9 | 0.57 |
| 2475.T | WDB Holdings Co Ltd | 1.07 | 0.75 | 0.44 |
| 4318.T | Quick Co Ltd | 0 | 0.96 | 0.95 |
| 4641.T | Altech Corp | 0 | 0.81 | 0.81 |
| 4763.T | Creek & River Co Ltd | 0.12 | 0.72 | 0.67 |
| 4848.T | Fullcast Holdings Co Ltd | 0.02 | 0.68 | 0.68 |
| 6070.T | Careerlink Co Ltd | 0.02 | 0.64 | 0.63 |
| 6539.T | Matching Service Japan Co Ltd | 0.01 | 0.56 | 0.55 |
| 7088.T | Forum Engineering Inc | 0 | 0.85 | 0.85 |
| 7781.T | Hirayama Holdings Co Ltd | 0.2 | 0.85 | 0.75 |
| Low | High | |
| Unlevered beta | 0.63 | 0.68 |
| Relevered beta | 1.12 | 1.25 |
| Adjusted relevered beta | 1.08 | 1.17 |
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.