2139.T
Chuco Co Ltd
Price:  
460 
JPY
Volume:  
900
Japan | Media

2139.T WACC - Weighted Average Cost of Capital

The WACC of Chuco Co Ltd (2139.T) is 5.1%.

The Cost of Equity of Chuco Co Ltd (2139.T) is 6%.
The Cost of Debt of Chuco Co Ltd (2139.T) is 4.25%.

RangeSelected
Cost of equity5.0% - 7.0%6%
Tax rate29.9% - 37.6%33.75%
Cost of debt4.0% - 4.5%4.25%
WACC4.4% - 5.8%5.1%
WACC

2139.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta0.590.64
Additional risk adjustments0.0%0.5%
Cost of equity5.0%7.0%
Tax rate29.9%37.6%
Debt/Equity ratio
0.380.38
Cost of debt4.0%4.5%
After-tax WACC4.4%5.8%
Selected WACC5.1%

2139.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 2139.T:

cost_of_equity (6.00%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.59) + 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.