2334.T WACC - Weighted Average Cost of Capital
The WACC of Eole Inc (2334.T) is 6.2%.
| Range | Selected | |
| Cost of equity | 5.1% - 7.2% | 6.15% |
| Tax rate | 3.2% - 4.9% | 4.05% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 5.2% - 7.1% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.61 | 0.67 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 7.2% |
| Tax rate | 3.2% | 4.9% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 5.2% | 7.1% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2334.T | Eole Inc | 0.08 | -0.64 | -0.6 |
| 2978.T | Tsukuruba Inc | 0.24 | 0.23 | 0.19 |
| 3645.T | Medical Net Inc | 0.29 | 0.61 | 0.47 |
| 3646.T | Ekitan & Co Ltd | 0.14 | 0.58 | 0.52 |
| 3690.T | YRGLM Inc | 0.25 | 0.44 | 0.36 |
| 3906.T | Albert Inc | 0 | 1.19 | 1.19 |
| 3970.T | Innovation Inc | 0.9 | 0.45 | 0.24 |
| 4387.T | ZUU Co Ltd | 0.08 | 0.51 | 0.48 |
| 6550.T | Fringe81 Co Ltd | 0.19 | 0.18 | 0.16 |
| 6573.T | Agile Media Network Inc | 0.06 | 0.72 | 0.68 |
| 7069.T | CyberBuzz Inc | 0.41 | 0.14 | 0.1 |
| Low | High | |
| Unlevered beta | 0.24 | 0.47 |
| Relevered beta | 0.42 | 0.51 |
| Adjusted relevered beta | 0.61 | 0.67 |
2334.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 2334.T:
cost_of_equity (6.15%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.61) + 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.