2462.T WACC - Weighted Average Cost of Capital
The WACC of LIKE Inc (2462.T) is 6.5%.
| Range | Selected | |
| Cost of equity | 7.0% - 9.3% | 8.15% |
| Tax rate | 35.4% - 36.4% | 35.9% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.6% - 7.3% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.91 | 0.98 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.0% | 9.3% |
| Tax rate | 35.4% | 36.4% |
| Debt/Equity ratio | 0.45 | 0.45 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.6% | 7.3% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2462.T | LIKE Inc | 0.45 | 0.51 | 0.4 |
| 2475.T | WDB Holdings Co Ltd | 1.15 | 0.73 | 0.42 |
| 4433.T | HITO-Communications Holdings Inc | 0.51 | 0.48 | 0.36 |
| 4641.T | Altech Corp | 0 | 0.81 | 0.81 |
| 4763.T | Creek & River Co Ltd | 0.12 | 0.71 | 0.66 |
| 4848.T | Fullcast Holdings Co Ltd | 0.02 | 0.68 | 0.68 |
| 6070.T | Careerlink Co Ltd | 0.03 | 0.65 | 0.64 |
| 6569.T | Nisso Corp | 0.1 | 1.27 | 1.19 |
| 7088.T | Forum Engineering Inc | 0 | 0.84 | 0.84 |
| 7781.T | Hirayama Holdings Co Ltd | 0.2 | 0.88 | 0.78 |
| Low | High | |
| Unlevered beta | 0.65 | 0.72 |
| Relevered beta | 0.87 | 0.97 |
| Adjusted relevered beta | 0.91 | 0.98 |
2462.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 2462.T:
cost_of_equity (8.15%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.91) + 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.