2480.T WACC - Weighted Average Cost of Capital
The WACC of System Location Co Ltd (2480.T) is 7.2%.
| Range | Selected | |
| Cost of equity | 9.4% - 12.9% | 11.15% |
| Tax rate | 34.7% - 35.9% | 35.3% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.3% - 8.0% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.31 | 1.47 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.4% | 12.9% |
| Tax rate | 34.7% | 35.9% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.3% | 8.0% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2480.T | System Location Co Ltd | 0.92 | 0.74 | 0.46 |
| 3692.T | FFRI Security Inc | 0 | 1.17 | 1.17 |
| 3698.T | CRI Middleware Co Ltd | 0.13 | 0.92 | 0.85 |
| 3816.T | Daiwa Computer Co Ltd | 0.02 | 0.49 | 0.48 |
| 3927.T | Fuva Brain Ltd | 0.08 | 1.31 | 1.24 |
| 4288.T | Asgent Inc | 0.2 | 2 | 1.77 |
| 4441.T | Tobila Systems Inc | 0.02 | 0.46 | 0.45 |
| 4493.T | Cyber Security Cloud Inc | 0.02 | 1.51 | 1.49 |
| 4752.T | Showa System Engineering Corp | 0 | 0.18 | 0.18 |
| 9692.T | Computer Engineering & Consulting Ltd | 0 | 0.92 | 0.92 |
| REXIT.KL | Rexit Bhd | 0.07 | 0.94 | 0.9 |
| Low | High | |
| Unlevered beta | 0.85 | 0.92 |
| Relevered beta | 1.46 | 1.7 |
| Adjusted relevered beta | 1.31 | 1.47 |
2480.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 2480.T:
cost_of_equity (11.15%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.31) + 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.