The WACC of Oenon Holdings Inc (2533.T) is 5.6%.
Range | Selected | |
Cost of equity | 4.6% - 7.4% | 6% |
Tax rate | 29.8% - 37.7% | 33.75% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 4.4% - 6.8% | 5.6% |
Category | Low | High |
Long-term bond rate | 1.4% | 1.9% |
Equity market risk premium | 6.1% | 7.1% |
Adjusted beta | 0.52 | 0.71 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 4.6% | 7.4% |
Tax rate | 29.8% | 37.7% |
Debt/Equity ratio | 0.15 | 0.15 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 4.4% | 6.8% |
Selected WACC | 5.6% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
2533.T | Oenon Holdings Inc | 0.15 | 0.85 | 0.77 |
2531.T | Takara Holdings Inc | 0.27 | 0.24 | 0.2 |
2540.T | Yomeishu Seizo Co Ltd | 1.08 | 0.12 | 0.07 |
2573.T | Hokkaido Coca Cola Bottling Co Ltd | 0.02 | 0.31 | 0.3 |
600197.SS | Xinjiang Yilite Industry Co Ltd | 0.05 | 1.6 | 1.55 |
AVG.AX | Australian Vintage Ltd | 5.21 | -0.16 | -0.03 |
BELU.ME | Beluga Group PAO | 0.62 | -0.06 | -0.04 |
IFBAGRO.NS | IFB Agro Industries Ltd | 0.02 | 1.49 | 1.47 |
TI.NS | Tilaknagar Industries Ltd | 0.02 | 2.03 | 2 |
Y92.SI | Thai Beverage PCL | 0.81 | 0.52 | 0.34 |
Low | High | |
Unlevered beta | 0.26 | 0.51 |
Relevered beta | 0.28 | 0.57 |
Adjusted relevered beta | 0.52 | 0.71 |
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 2533.T:
cost_of_equity (6.00%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.52) + 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.