2398.T WACC - Weighted Average Cost of Capital

The WACC of Tsukui Holdings Corp (2398.T) is 7.0%.

The Cost of Equity of Tsukui Holdings Corp (2398.T) is 9.55%.

The Cost of Debt of Tsukui Holdings Corp (2398.T) is 4.25%.

	Range	Selected
Cost of equity	8.20% - 10.90%	9.55%
Tax rate	37.70% - 37.90%	37.80%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.1% - 7.9%	7.0%

WACC

2398.T WACC calculation

Category	Low	High

Long-term bond rate	0.8%	1.2%
Equity market risk premium	5.4%	6.4%
Adjusted beta	1.37	1.42

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.20%	10.90%

Tax rate	37.70%	37.90%
Debt/Equity ratio	0.59	0.59
Cost of debt	4.00%	4.50%

After-tax WACC	6.1%	7.9%


Selected WACC	7.0%

2398.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 2398.T:

cost_of_equity (9.55%) = risk_free_rate (1.00%) + equity_risk_premium (5.90%) * adjusted_beta (1.37) + 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.