2352.T WACC - Weighted Average Cost of Capital

The WACC of Azia Co Ltd (2352.T) is 8.2%.

The Cost of Equity of Azia Co Ltd (2352.T) is 9.55%.

The Cost of Debt of Azia Co Ltd (2352.T) is 4.25%.

	Range	Selected
Cost of equity	7.90% - 11.20%	9.55%
Tax rate	35.00% - 37.60%	36.30%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.8% - 9.5%	8.2%

WACC

2352.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.07	1.23

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	11.20%

Tax rate	35.00%	37.60%
Debt/Equity ratio	0.26	0.26
Cost of debt	4.00%	4.50%

After-tax WACC	6.8%	9.5%


Selected WACC	8.2%

2352.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 2352.T:

cost_of_equity (9.55%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.07) + 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.