2337.T WACC - Weighted Average Cost of Capital
The WACC of Ichigo Inc (2337.T) is 5.0%.
| Range | Selected | |
| Cost of equity | 6.8% - 9.6% | 8.2% |
| Tax rate | 30.9% - 31.7% | 31.3% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.4% - 5.7% | 5.0% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.88 | 1 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 9.6% |
| Tax rate | 30.9% | 31.7% |
| Debt/Equity ratio | 1.51 | 1.51 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.4% | 5.7% |
| Selected WACC | 5.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2337.T | Ichigo Inc | 1.51 | 1.01 | 0.49 |
| 3276.T | Japan Property Management Center Co Ltd | 0.08 | 0.42 | 0.4 |
| 3300.T | Ambition Corp | 1.06 | 1.99 | 1.16 |
| 8806.T | Daibiru Corp | 0.66 | 1.53 | 1.05 |
| 8818.T | Keihanshin Building Co Ltd | 1 | 0.93 | 0.55 |
| 8841.T | TOC Co Ltd | 0.02 | 0.5 | 0.5 |
| 8842.T | Tokyo Rakutenchi Co Ltd | 0.07 | -0.6 | -0.57 |
| 8864.T | Airport Facilities Co Ltd | 0.81 | 0.41 | 0.26 |
| 8889.T | Apaman Co Ltd | 1.42 | -0.29 | -0.15 |
| 8914.T | Arealink Co Ltd | 0.39 | 0.51 | 0.41 |
| Low | High | |
| Unlevered beta | 0.4 | 0.49 |
| Relevered beta | 0.82 | 1 |
| Adjusted relevered beta | 0.88 | 1 |
2337.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 2337.T:
cost_of_equity (8.20%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.88) + 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.