2438.T WACC - Weighted Average Cost of Capital
The WACC of Asukanet Co Ltd (2438.T) is 6.4%.
| Range | Selected | |
| Cost of equity | 5.1% - 7.7% | 6.4% |
| Tax rate | 27.3% - 29.2% | 28.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.1% - 7.7% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.61 | 0.75 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 7.7% |
| Tax rate | 27.3% | 29.2% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.1% | 7.7% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2438.T | Asukanet Co Ltd | 0 | 0.81 | 0.81 |
| 3286.T | Trust Holdings Inc | 1.24 | 0.07 | 0.04 |
| 3461.T | Palma Co Ltd | 0.2 | 1.04 | 0.91 |
| 6086.T | Shin Maint Holdings Co Ltd | 0.02 | 0.29 | 0.29 |
| 6093.T | Escrow Agent Japan Inc | 0.01 | 0.78 | 0.77 |
| 6182.T | Rozetta Corp | 0.28 | 0.95 | 0.79 |
| 6544.T | Japan Elevator Service Holdings Co Ltd | 0.02 | 0.53 | 0.52 |
| 7502.T | Plaza Create Honsha Co Ltd | 3.93 | 0.07 | 0.02 |
| 9307.T | Sugimura Warehouse Co Ltd | 0.22 | 0.53 | 0.46 |
| 9313.T | Maruhachi Warehouse Co Ltd | 0.69 | 0.5 | 0.34 |
| Low | High | |
| Unlevered beta | 0.41 | 0.62 |
| Relevered beta | 0.42 | 0.63 |
| Adjusted relevered beta | 0.61 | 0.75 |
2438.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 2438.T:
cost_of_equity (6.40%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.61) + 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.