2352.T WACC - Weighted Average Cost of Capital
The WACC of Azia Co Ltd (2352.T) is 7.9%.
| Range | Selected | |
| Cost of equity | 8.0% - 10.5% | 9.25% |
| Tax rate | 35.0% - 37.6% | 36.3% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.9% - 8.9% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.09 | 1.13 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.0% | 10.5% |
| Tax rate | 35.0% | 37.6% |
| Debt/Equity ratio | 0.26 | 0.26 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.9% | 8.9% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2352.T | Azia Co Ltd | 0.26 | 1.39 | 1.2 |
| 2345.T | Kushim Inc | 0.37 | 1.29 | 1.05 |
| 3653.T | Morpho Inc | 0 | 1.32 | 1.31 |
| 3747.T | Intertrade Co Ltd | 0.09 | 1.04 | 0.99 |
| 3858.T | Ubiquitous AI Corp | 0.02 | 0.96 | 0.95 |
| 3905.T | Datasection Inc | 0.04 | 1.04 | 1.02 |
| 4057.T | Interfactory Inc | 0.18 | 0.51 | 0.46 |
| 4388.T | AI Inc | 0.08 | 0.68 | 0.65 |
| 4476.T | AI Cross Inc | 0 | 1.73 | 1.73 |
| 6579.T | logly Inc | 0.18 | 0.65 | 0.58 |
| Low | High | |
| Unlevered beta | 0.97 | 1.03 |
| Relevered beta | 1.13 | 1.19 |
| Adjusted relevered beta | 1.09 | 1.13 |
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 (9.25%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.09) + 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.