2353.T WACC - Weighted Average Cost of Capital
The WACC of Nippon Parking Development Co Ltd (2353.T) is 6.6%.
| Range | Selected | |
| Cost of equity | 5.8% - 8.8% | 7.3% |
| Tax rate | 25.8% - 30.7% | 28.25% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.4% - 7.9% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.73 | 0.91 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 8.8% |
| Tax rate | 25.8% | 30.7% |
| Debt/Equity ratio | 0.19 | 0.19 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.4% | 7.9% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2353.T | Nippon Parking Development Co Ltd | 0.19 | 0.61 | 0.53 |
| 2151.T | Takeei Corp | 0.85 | 1.21 | 0.75 |
| 2325.T | NJS Co Ltd | 0 | 0.78 | 0.78 |
| 3150.T | Gremz Inc | 0.07 | 0.89 | 0.84 |
| 4658.T | Nippon Air Conditioning Services Co Ltd | 0.05 | 0.78 | 0.76 |
| 4666.T | Park24 Co Ltd | 0.42 | 0.65 | 0.5 |
| 4809.T | Paraca Inc | 1.2 | 0.59 | 0.31 |
| 5690.T | Rever Holdings Corp | 0.23 | 1 | 0.86 |
| 6044.T | Sanki Service Corp | 0.09 | 0.49 | 0.46 |
| 9768.T | Idea Consultants Inc | 0.03 | 0.51 | 0.5 |
| Low | High | |
| Unlevered beta | 0.52 | 0.75 |
| Relevered beta | 0.6 | 0.87 |
| Adjusted relevered beta | 0.73 | 0.91 |
2353.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 2353.T:
cost_of_equity (7.30%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.73) + 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.