2370.T WACC - Weighted Average Cost of Capital

The WACC of Medinet Co Ltd (2370.T) is 6.5%.

The Cost of Equity of Medinet Co Ltd (2370.T) is 6.50%.

The Cost of Debt of Medinet Co Ltd (2370.T) is 5.50%.

	Range	Selected
Cost of equity	5.50% - 7.50%	6.50%
Tax rate	0.40% - 0.50%	0.45%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.5% - 7.5%	6.5%

WACC

2370.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.59	0.65

Additional risk adjustments	0.5%	1.0%
Cost of equity	5.50%	7.50%

Tax rate	0.40%	0.50%
Debt/Equity ratio	0	0
Cost of debt	4.00%	7.00%

After-tax WACC	5.5%	7.5%


Selected WACC	6.5%

2370.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 2370.T:

cost_of_equity (6.50%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.59) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.